Strong Call Option Volume and Open Interest
On 2 December 2025, ICICI Bank's call options with a strike price of ₹1,400 and expiry date of 30 December 2025 recorded the highest trading volume among active contracts. A total of 10,851 contracts exchanged hands, generating a turnover of approximately ₹1165.18 lakhs. The open interest for these contracts stood at 9,574, indicating sustained investor commitment to this strike price as the expiry approaches.
This level of activity in the call options market signals a predominantly bullish sentiment, as traders position themselves to benefit from potential upward price movements. The underlying stock price at the time was ₹1,386.70, just shy of the ₹1,400 strike, suggesting that market participants anticipate the stock to reach or surpass this level by the end of December.
Price Performance and Moving Averages
ICICI Bank's stock price demonstrated resilience on the trading day, outperforming its sector by 0.59%. The stock recorded a daily return of 1.06%, contrasting with the sector's 0.42% and the broader Sensex index which declined by 0.39%. This relative strength underscores the bank's appeal amid a mixed market environment.
Technical indicators reveal that the stock price is trading above its 5-day, 20-day, 50-day, and 200-day moving averages, while remaining below the 100-day moving average. This pattern suggests short- to medium-term momentum is positive, although some resistance may be encountered near the 100-day average level.
Investor Participation and Liquidity
Investor engagement in ICICI Bank shares has shown an uptick, with delivery volumes reaching 80.25 lakh shares on 2 December, marking a 7.87% rise compared to the five-day average delivery volume. This increase in delivery volume indicates a growing conviction among investors to hold the stock rather than trade intraday, which can be interpreted as a sign of confidence in the bank's prospects.
Liquidity metrics further support the stock's attractiveness for sizeable trades. Based on 2% of the five-day average traded value, ICICI Bank is liquid enough to accommodate trade sizes of up to ₹31.07 crore without significant market impact. This level of liquidity is crucial for institutional investors and traders looking to execute large orders efficiently.
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Market Capitalisation and Sector Context
ICICI Bank is a large-cap entity with a market capitalisation of approximately ₹9,82,003 crore, positioning it as a heavyweight within the private sector banking industry. Its scale and market presence contribute to its prominence in both cash and derivatives markets.
Within the private sector banking sector, ICICI Bank's recent performance and option market activity stand out. The sector's 1-day return was 0.42%, while ICICI Bank's 1-day return was notably higher at 1.06%, reflecting a relative outperformance that may be attracting speculative and hedging interest in the options market.
Expiry Patterns and Strike Price Significance
The December 30 expiry date for the most actively traded call options aligns with the typical monthly options cycle, which often sees increased activity as traders adjust positions ahead of contract expiry. The ₹1,400 strike price is particularly significant as it is close to the current underlying price, making it a key level for traders betting on near-term gains.
Open interest at this strike price remains elevated, suggesting that many market participants are maintaining their bullish positions rather than closing them out. This could indicate expectations of a price move above ₹1,400 before expiry, or a strategic hedge against other portfolio exposures.
Implications for Investors and Traders
The robust call option activity in ICICI Bank highlights a market environment where investors are positioning for potential upside while managing risk through derivatives. The combination of strong delivery volumes, liquidity, and technical indicators supports the view that the stock is attracting both long-term holders and short-term traders.
For investors, monitoring the evolving open interest and volume in call options can provide insights into market sentiment and potential price trajectories. Traders may also consider the interplay between the stock’s moving averages and option strike prices to gauge momentum and resistance levels.
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Conclusion: A Watchful Eye on Derivatives Activity
ICICI Bank's derivatives market activity, particularly in call options, offers a window into investor expectations and market dynamics. The concentration of trades at the ₹1,400 strike price with December expiry reflects a strategic positioning that could influence price movements in the coming weeks.
While the stock shows technical strength and liquidity conducive to active trading, investors should remain attentive to broader market conditions and sector trends. The interplay between option market data and underlying price action remains a valuable tool for gauging sentiment and potential opportunities within this leading private sector bank.
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