ICICI Bank Sees Heavy Put Option Activity Ahead of March Expiry

Put Option Activity Highlights

On 26 February 2026, ICICI Bank’s put options with a strike price of ₹1,400 expiring on 30 March 2026 emerged as the most actively traded contracts in the segment. A total of 3,510 contracts changed hands, generating a turnover of approximately ₹468.55 lakhs. The open interest for these puts stands at 3,679 contracts, indicating sustained investor interest and positioning ahead of the expiry date.

The underlying stock price hovered around ₹1,402.10, just above the ₹1,400 strike, suggesting that traders are positioning for a potential decline or are seeking protection against downside risk. This level is critical as it represents a psychological and technical support zone for the stock.

Stock Performance and Market Context

ICICI Bank’s stock performance on the day was largely in line with its sector peers, registering a marginal gain of 0.04%, outperforming the sector’s slight decline of 0.02% and the broader Sensex’s fall of 0.06%. The stock has been on a positive trajectory for the past two days, delivering a cumulative return of 1.19% during this period.

Technically, the share price remains above its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short- to medium-term strength. However, it continues to trade below the 200-day moving average, which may be interpreted as a longer-term resistance level. This mixed technical picture could be contributing to the increased put option activity as investors hedge against potential volatility.

Investor participation has also risen notably, with delivery volumes on 25 February reaching 1.23 crore shares, a 70.25% increase compared to the five-day average. This heightened liquidity supports the active options market and suggests that institutional and retail investors alike are recalibrating their positions.

Investor Sentiment and Hedging Implications

The pronounced activity in put options at the ₹1,400 strike price suggests that market participants are either hedging existing long positions or speculating on a potential price correction. Put options provide a form of insurance against declines, and the elevated open interest indicates that many investors are actively managing risk amid uncertain macroeconomic conditions and sector-specific challenges.

ICICI Bank’s current Mojo Score stands at 54.0 with a Mojo Grade of Hold, upgraded from Sell on 6 February 2026. This reflects a cautious optimism among analysts, balancing the bank’s solid fundamentals against external headwinds. The market cap grade remains at 1, underscoring its status as a large-cap stock with significant institutional interest.

Given the stock’s liquidity, with a 5-day average traded value supporting trade sizes up to ₹40.64 crore, the options market is sufficiently deep to accommodate sizeable hedging and speculative trades without excessive price impact.

Expiry Patterns and Strategic Considerations

The expiry date of 30 March 2026 is a focal point for options traders, as positions are adjusted or closed out ahead of this deadline. The concentration of put contracts at the ₹1,400 strike price, close to the current market price, indicates a key level where traders expect significant price action or volatility.

Historically, ICICI Bank’s options market has shown increased activity near major expiry dates, often reflecting broader market sentiment shifts or reactions to quarterly earnings and policy announcements. Investors should monitor open interest changes and volume spikes in the coming weeks to gauge evolving sentiment.

Balancing Risks and Opportunities

While the surge in put option activity signals caution, ICICI Bank’s underlying fundamentals remain robust. The bank continues to benefit from a strong retail franchise, improving asset quality, and steady credit growth. However, investors should remain vigilant to macroeconomic risks such as interest rate fluctuations, regulatory changes, and geopolitical uncertainties that could impact banking sector performance.

For traders, the current options landscape offers opportunities to hedge downside risk or capitalise on volatility through strategic put buying or spreads. The ₹1,400 strike price serves as a critical pivot, and movements around this level will likely dictate near-term market direction for ICICI Bank shares.

In summary, the active put option trading in ICICI Bank reflects a nuanced market outlook combining cautious hedging with selective optimism. Investors should closely monitor open interest trends, expiry dynamics, and broader sector developments to make informed decisions.

Outlook and Investor Takeaways

ICICI Bank’s recent upgrade to a Hold rating by MarketsMOJO, coupled with its sizeable market capitalisation of ₹10,00,228 crore, positions it as a key bellwether in the private banking sector. The stock’s liquidity and trading volumes support active participation from both institutional and retail investors.

Given the current put option activity and technical indicators, investors may consider a balanced approach—maintaining exposure while employing protective strategies such as put options or stop-loss orders. This approach can help mitigate downside risks while allowing participation in potential upside as the bank navigates evolving market conditions.

Overall, the options market data provides valuable insight into investor sentiment and risk management strategies surrounding ICICI Bank, underscoring the importance of options analysis in comprehensive equity evaluation.

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