ICICI Bank Sees Robust Call Option Activity Ahead of Expiry Amid Bullish Sentiment

Robust Call Option Trading Highlights Investor Confidence

On 23 February 2026, ICICI Bank’s call options with a strike price of ₹1,410 expiring on 24 February 2026 emerged as the most actively traded contracts. A total of 5,482 contracts changed hands, generating a turnover of ₹65.62 lakhs. The open interest for these contracts stands at 9,915, underscoring sustained investor interest and potential accumulation ahead of expiry.

The underlying stock price closed at ₹1,405.40, just shy of the ₹1,410 strike, indicating that traders are positioning for a near-term upside. This proximity to the strike price often attracts speculative and hedging activity, as market participants anticipate a breakout or seek to capitalise on volatility around expiry.

Stock Performance Aligns with Sector Trends

ICICI Bank’s stock has been gaining momentum, recording a 1.21% return over the past two consecutive trading days. Its one-day return of 0.77% marginally outperformed the private sector banking sector’s 0.76% gain and the broader Sensex’s 0.64% rise on the same day. The stock traded within a narrow range of ₹10.9, reflecting measured but steady buying interest.

Technical indicators reveal that the stock is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained uptrend. However, it remains slightly below its 5-day moving average, suggesting some short-term consolidation. Notably, delivery volumes surged to 68.68 lakh shares on 20 February, a 24.06% increase compared to the five-day average, indicating rising investor participation and confidence in the stock’s near-term prospects.

Market Capitalisation and Quality Metrics

ICICI Bank commands a substantial market capitalisation of ₹9,97,347 crore, categorising it firmly as a large-cap stock. Despite its size, the stock’s Mojo Score stands at 54.0 with a Mojo Grade of Hold, upgraded from a previous Sell rating on 6 February 2026. This upgrade reflects improved fundamentals and technical trends, although the stock has yet to demonstrate a decisive breakout to warrant a stronger buy rating.

The bank’s Market Cap Grade is rated 1, indicating its dominant position within the private sector banking industry. The recent upgrade in Mojo Grade suggests that while the stock is currently consolidating, it retains potential for further appreciation, supported by solid sectoral tailwinds and improving financial metrics.

Expiry Patterns and Strike Price Concentration

The concentration of call option activity at the ₹1,410 strike price, just above the current market price, suggests that traders are betting on a modest upside in the near term. The expiry date of 24 February 2026 is imminent, which typically leads to increased volatility and speculative positioning as traders adjust their portfolios.

Open interest levels near this strike price have remained elevated, indicating that many investors are either establishing new bullish positions or rolling over existing ones. This behaviour often precedes a breakout move, as market participants seek to benefit from potential price appreciation or hedge against downside risks.

Investor Sentiment and Sectoral Outlook

Investor sentiment towards ICICI Bank appears cautiously optimistic. The stock’s recent upgrade from Sell to Hold by MarketsMOJO on 6 February 2026 reflects a reassessment of its risk-reward profile. While the bank continues to face challenges from macroeconomic factors and regulatory changes, its strong capital base, improving asset quality, and digital initiatives provide a solid foundation for growth.

The private sector banking sector itself has shown resilience, with steady credit growth and improving margins. ICICI Bank’s performance is broadly in line with sectoral trends, and its liquidity profile supports active trading and investor participation. The stock’s liquidity, measured by a trade size capacity of ₹27.15 crore based on 2% of the five-day average traded value, ensures that institutional and retail investors can transact efficiently without significant price impact.

Implications for Investors and Traders

The surge in call option activity at near-the-money strikes ahead of expiry is a clear indication of bullish sentiment among traders. For investors, this suggests a positive outlook on ICICI Bank’s short-term price trajectory, supported by improving fundamentals and sectoral tailwinds.

However, the Hold rating and moderate Mojo Score imply that investors should exercise caution and monitor key technical levels closely. The stock’s performance relative to moving averages and delivery volumes indicates a healthy but measured uptrend, with potential for volatility around expiry.

Traders looking to capitalise on this momentum may consider strategies that benefit from moderate price appreciation or volatility spikes, such as buying call options or employing spread strategies. Meanwhile, long-term investors should weigh the bank’s fundamentals against broader macroeconomic risks and sector dynamics before increasing exposure.

Conclusion

ICICI Bank Ltd.’s recent call option activity highlights a growing bullish consensus among market participants, driven by steady stock performance and improving investor participation. The concentration of trades at the ₹1,410 strike price ahead of the 24 February expiry underscores expectations of near-term upside, while the stock’s technical and fundamental indicators support a cautiously optimistic outlook.

As the expiry date approaches, investors and traders alike will be closely watching price movements and open interest trends to gauge the sustainability of this momentum. With a large market capitalisation and significant liquidity, ICICI Bank remains a key bellwether for the private sector banking space in India.

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