Put Option Activity Concentrated Near Current Market Levels
Data from recent trading sessions reveals that ICICI Bank's put options with expiry on 30 December 2025 have attracted significant volumes, particularly at strike prices of ₹1,370 and ₹1,380. The ₹1,380 strike saw 1,751 contracts traded, generating a turnover of approximately ₹261.69 lakhs and an open interest of 3,113 contracts. Meanwhile, the ₹1,370 strike recorded 1,194 contracts traded, with turnover near ₹142.84 lakhs and open interest standing at 1,968 contracts. These figures underscore a concentrated interest in downside protection or speculative bearish bets close to the stock’s prevailing price of ₹1,373.6.
Market Context and Price Movement
ICICI Bank’s stock price has been trading within a narrow band of ₹9.8 on the day, reflecting limited volatility. The stock underperformed its sector by 0.26% and recorded a one-day return of -1.17%, compared to the sector’s -0.78% and the Sensex’s -0.31%. The price currently sits above its 20-day and 50-day moving averages but remains below the 5-day, 100-day, and 200-day averages, indicating a mixed technical picture.
Investor participation has shown signs of moderation, with delivery volume on 1 December at 61.67 lakh shares, down by 26.43% relative to the five-day average delivery volume. Despite this, liquidity remains adequate, with the stock’s traded value supporting trade sizes up to ₹31.14 crore based on 2% of the five-day average traded value.
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Implications of Elevated Put Open Interest
The substantial open interest in put options at strike prices close to the current market value suggests that traders are positioning for potential downside risk or seeking to hedge existing long exposures. The concentration of open interest at ₹1,380 and ₹1,370 strikes indicates a focus on protecting against declines in the near term, with expiry less than a month away.
Such activity often reflects a cautious market stance, especially in a large-cap private sector bank like ICICI Bank, which commands a market capitalisation of approximately ₹9,93,584 crore. The stock’s recent underperformance relative to its sector and the broader market may be contributing to this sentiment, as investors weigh macroeconomic factors and sector-specific challenges.
Expiry Patterns and Market Sentiment
Options expiry dates often act as focal points for market volatility and positioning. The 30 December 2025 expiry is attracting heightened attention, with put option volumes outpacing calls at these strike prices. This pattern can be indicative of hedging strategies by institutional investors or speculative bets anticipating a correction or consolidation phase.
While the stock’s technical indicators present a mixed outlook, the narrowing price range and falling delivery volumes suggest a period of indecision among investors. The active put option interest may therefore be a reflection of prudent risk management amid uncertain market conditions.
Comparative Sector and Market Performance
Within the private sector banking space, ICICI Bank’s performance today trails the sector average, which itself is experiencing modest declines. The Sensex’s smaller fall of 0.31% compared to ICICI Bank’s 1.17% drop highlights the stock’s relative weakness on the day. This divergence may be influencing option traders to adopt protective positions through puts, especially given the stock’s sizeable market cap and liquidity profile.
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Outlook and Investor Considerations
Investors monitoring ICICI Bank should note the elevated put option activity as a signal of cautious sentiment or hedging demand. The proximity of strike prices to the current market value and the sizeable open interest suggest that market participants are preparing for potential price fluctuations as the December expiry approaches.
Given the stock’s mixed technical signals and recent underperformance relative to its sector, the option market data provides an additional layer of insight into prevailing market attitudes. Traders and investors may wish to consider these dynamics alongside fundamental factors and broader economic indicators when assessing their positions in ICICI Bank.
Summary
ICICI Bank’s put options have become the focal point of active trading ahead of the 30 December 2025 expiry, with significant volumes and open interest concentrated at ₹1,370 and ₹1,380 strike prices. This activity reflects a degree of bearish positioning or hedging amid a narrow trading range and subdued investor participation. The stock’s recent relative weakness compared to its sector and the Sensex further contextualises this trend. As expiry nears, market participants will be closely watching price movements and option flows for indications of future direction.
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