Put Option Activity Highlights
Data from the derivatives market reveals that ICICI Bank’s put options with a strike price of ₹1350 expiring on 30 December 2025 have witnessed significant trading volumes. A total of 2,672 contracts changed hands, generating a turnover of approximately ₹21.92 crores. The open interest at this strike stands at 2,498 contracts, indicating sustained interest and potential accumulation of bearish bets or protective hedges.
The underlying stock price of ICICI Bank at the time of this activity was ₹1349.20, closely aligned with the strike price of the active put options. This proximity suggests that traders are positioning for possible downside risk or volatility around this price level as expiry nears.
Price and Market Performance Context
On 17 December 2025, ICICI Bank’s stock price recorded a decline of 1.05% for the day, underperforming its private sector banking peers, which fell by 0.34%. The broader Sensex index, in contrast, showed a modest gain of 0.21%, highlighting the relative weakness in ICICI Bank’s shares.
Technical indicators further illustrate the cautious stance. The stock is trading below its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This pattern often reflects a bearish trend or consolidation phase, which may be influencing the increased put option interest.
Investor participation has also shown signs of rising engagement. Delivery volume on 16 December 2025 reached 54.78 lakh shares, marking a 7.64% increase compared to the five-day average delivery volume. This uptick in delivery volume suggests that investors are actively transacting in the stock, possibly adjusting their positions in response to evolving market conditions.
Liquidity remains adequate for sizeable trades, with the stock’s average traded value over five days supporting a trade size of approximately ₹21.7 crores based on 2% of the average value. This level of liquidity facilitates the execution of large option and equity trades without significant market impact.
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
Implications of Put Option Concentration
The concentration of put option activity at the ₹1350 strike price, which is near the current market price, suggests that traders are either hedging existing long positions or speculating on a potential decline in ICICI Bank’s share price. Put options provide a form of insurance against downside risk, and their popularity often rises when investors anticipate volatility or a correction.
Given the stock’s recent underperformance relative to its sector and the broader market, the elevated put option interest may reflect a cautious market outlook. The expiry date of 30 December 2025 is also significant, as it coincides with the end of the calendar year, a period often marked by portfolio rebalancing and risk management activities by institutional investors.
Sector and Market Capitalisation Context
ICICI Bank operates within the private sector banking industry, a segment that has experienced mixed performance amid macroeconomic challenges and regulatory developments. With a market capitalisation of approximately ₹9,76,703 crores, ICICI Bank is classified as a large-cap stock, attracting considerable institutional interest and trading volumes.
The bank’s relative underperformance on the day, combined with technical signals and option market activity, may be indicative of a broader reassessment of risk within the private banking sector. Investors and traders appear to be positioning themselves prudently as the year-end approaches.
Holding ICICI Bank . from Private Sector Bank? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Outlook and Considerations for Investors
While the put option activity signals a degree of caution, it is important to consider the broader context of ICICI Bank’s fundamentals and market environment. The bank remains a dominant player in India’s private banking sector with a substantial market cap and liquidity profile. However, the current technical setup and option market positioning suggest that investors are factoring in potential near-term volatility or downside risk.
Investors should monitor the stock’s price action relative to key moving averages and watch for changes in open interest and volume in both equity and derivatives markets. The expiry on 30 December 2025 will be a critical juncture, potentially influencing price movements as option positions are squared off or rolled forward.
Given the evolving market conditions, a balanced approach that considers both the bank’s long-term prospects and short-term technical signals may be prudent. The option market activity provides valuable insight into market sentiment and risk management strategies employed by traders and institutional investors.
Summary
ICICI Bank’s prominence in put option trading ahead of the December expiry highlights a notable degree of bearish positioning or hedging. The strike price of ₹1350, close to the current market price, has attracted the highest volume and open interest in put contracts, reflecting market participants’ cautious stance. Combined with the stock’s underperformance relative to its sector and trading below key moving averages, these factors underscore a period of heightened vigilance among investors as the year draws to a close.
Market participants should continue to track option market trends alongside price and volume data to better understand evolving risk perceptions and potential price trajectories for ICICI Bank.
Only ₹14,999 - Get MojoOne + Stock of the Week for 2 Years PLUS 6 Months FREE Claim 83% OFF →
