ICICI Bank Sees Surge in Call Option Activity Ahead of February Expiry

Robust Call Option Trading at 1400 Strike Price

The most active call options for ICICI Bank are concentrated at the 1400 strike price, with 4,597 contracts traded on 19 February 2026. This activity generated a turnover of ₹16.57 crores, reflecting significant investor interest in bullish bets ahead of the expiry date. Open interest at this strike stands at 6,729 contracts, indicating sustained positioning rather than short-term speculative trades.

The underlying stock price was ₹1,392.40 at the time, just shy of the 1400 strike, suggesting traders are anticipating a potential upward move to or beyond this level in the coming days. This is consistent with the stock’s recent outperformance relative to its sector, having gained 0.22% on the day compared to the sector’s 0.24% and the Sensex’s 0.07%.

Price and Volume Dynamics Support Bullish Outlook

ICICI Bank’s price action has been characterised by a narrow trading range of ₹11.7, reflecting some consolidation. However, the stock remains above its 20-day, 50-day, and 100-day moving averages, signalling underlying strength. It trades below its 5-day and 200-day moving averages, indicating short-term caution among traders.

Investor participation has risen notably, with delivery volume reaching 72.77 lakh shares on 19 February, a 9.7% increase over the five-day average. This heightened delivery volume suggests genuine accumulation rather than intraday speculation, reinforcing the bullish positioning seen in the options market.

Liquidity remains ample, with the stock’s traded value supporting a trade size of approximately ₹28.35 crores based on 2% of the five-day average traded value. This ensures that large option trades can be executed without significant market impact, attracting institutional and retail investors alike.

Mojo Score and Rating Reflect Cautious Optimism

MarketsMOJO assigns ICICI Bank a Mojo Score of 54.0, placing it in the Hold category. This represents an upgrade from a Sell rating issued on 6 February 2026, signalling improved fundamentals and market sentiment. Despite the upgrade, the bank’s Market Cap Grade remains at 1, reflecting its status as a large-cap stock with a market capitalisation of ₹9,94,913 crores.

The Hold rating suggests that while the bank shows promise, investors should remain vigilant given the broader macroeconomic environment and sector-specific challenges. The private sector banking industry continues to face competitive pressures and regulatory scrutiny, factors that could temper upside potential.

Expiry Patterns and Investor Positioning

The 24 February 2026 expiry is attracting concentrated activity in ICICI Bank’s call options, particularly at the 1400 strike. This pattern indicates that traders are positioning for a potential breakout above this level in the short term. The open interest build-up suggests that these are not merely speculative bets but reflect a strategic bullish stance.

Such positioning often precedes significant price moves, as option writers and buyers adjust their hedges and exposures. The proximity of the strike price to the current market price enhances the likelihood of these options being exercised or rolled over, which could add to volatility in the final days before expiry.

Sector and Market Context

ICICI Bank’s performance must be viewed in the context of the broader private sector banking sector, which has seen mixed returns recently. The sector’s 1-day return of 0.24% slightly outpaces ICICI Bank’s 0.22%, but the bank’s outperformance relative to the Sensex’s 0.07% gain highlights its relative resilience.

Investors should also consider the bank’s liquidity profile and delivery volumes, which support sustained trading interest. The combination of technical indicators, option market activity, and fundamental upgrades suggests a cautiously optimistic outlook for ICICI Bank in the near term.

Investor Takeaway

For investors tracking ICICI Bank, the current surge in call option activity at the 1400 strike price ahead of the 24 February expiry is a clear signal of bullish sentiment. The combination of rising delivery volumes, steady price support above key moving averages, and an upgraded Mojo Grade from Sell to Hold suggests that the bank is poised for potential gains, albeit with some caution.

Market participants should monitor the stock’s price action closely in the coming sessions, especially as the expiry date approaches. The open interest concentration at the 1400 strike could lead to increased volatility, presenting both opportunities and risks for traders and long-term investors alike.

Given the bank’s large-cap status and liquidity profile, it remains a core holding for many portfolios, but the Hold rating advises a measured approach rather than aggressive accumulation at this stage.

Conclusion

ICICI Bank’s recent option market activity underscores a growing bullish bias among investors, supported by improving fundamentals and technical indicators. While the stock has yet to decisively break above the 1400 level, the build-up in call option open interest and turnover suggests that market participants are positioning for a positive near-term outcome. Investors should balance this optimism with the bank’s Hold rating and sector dynamics to make informed decisions.

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