Interglobe Aviation Sees Heavy Call Option Activity Amidst Market Volatility

Current Market Performance and Price Dynamics

Interglobe Aviation’s stock price has been under pressure over the past week, recording a consecutive five-day decline that culminated in a cumulative return of -6.48%. On 3 December 2025, the stock touched an intraday low of ₹5,405, representing a 3.4% drop from previous levels. Despite this short-term weakness, the share price remains above its 200-day moving average, signalling some underlying long-term support. However, it is trading below its 5-day, 20-day, 50-day, and 100-day moving averages, indicating recent downward momentum.

Investor participation has shown signs of strengthening, with delivery volumes on 3 December reaching 7.13 lakh shares. This figure represents a 70.57% increase compared to the five-day average delivery volume, suggesting heightened interest in the stock amid the recent price movements. Liquidity remains adequate, with the stock able to accommodate trade sizes of approximately ₹8.34 crore based on 2% of the five-day average traded value.

Options Market Activity: Strike Prices and Expiry Patterns

The options market for Interglobe Aviation has been particularly active, with call options expiring on 30 December 2025 drawing significant attention. Two strike prices have emerged as focal points for traders: ₹5,500 and ₹5,600. The call option at the ₹5,500 strike price recorded 3,783 contracts traded, generating a turnover of ₹8.001 crore. Open interest at this strike stands at 832 contracts, reflecting ongoing positions held by market participants.

Meanwhile, the ₹5,600 strike call option saw 3,549 contracts traded, with a turnover of ₹4.994 crore and an open interest of 1,763 contracts. The underlying stock price at the time was ₹5,545.50, placing these strike prices close to the current market level and indicating that traders are actively positioning for potential upward price movements before the December expiry.

Investor Sentiment and Bullish Positioning

The concentration of call option activity near the current stock price suggests that market participants are anticipating a potential rebound or at least a stabilisation in Interglobe Aviation’s share price in the near term. The relatively high open interest at the ₹5,600 strike price, which is slightly above the current market value, indicates that investors may be positioning for gains if the stock manages to surpass this level before expiry.

Such positioning is noteworthy given the stock’s recent underperformance relative to its sector. On the day in question, Interglobe Aviation’s one-day return was -0.80%, matching the sector’s decline of -0.80%, while the broader Sensex index recorded a marginal gain of 0.10%. This alignment with sector performance, despite the stock’s recent five-day slide, may reflect cautious optimism among traders.

Market Capitalisation and Industry Context

Interglobe Aviation is classified as a large-cap company with a market capitalisation of approximately ₹2,14,596 crore. Operating within the airline industry and sector, the company remains a key player in India’s aviation landscape. The airline sector has faced various headwinds in recent times, including fluctuating fuel prices and regulatory challenges, which have influenced stock price movements across the board.

Against this backdrop, the active call option trading in Interglobe Aviation could be interpreted as a strategic move by investors seeking to capitalise on potential sector recovery or company-specific catalysts. The December expiry date provides a defined timeframe for these expectations to materialise or adjust.

Implications for Investors and Traders

For investors and traders monitoring Interglobe Aviation, the current options activity offers insights into market expectations and risk appetite. The clustering of call options near the stock’s prevailing price level, combined with rising delivery volumes, suggests that some market participants are preparing for a potential price recovery or at least a period of reduced volatility.

However, the stock’s recent downward trend and its position below several short- and medium-term moving averages highlight the need for caution. Investors should consider broader market conditions, sector dynamics, and company-specific developments when evaluating their positions.

Given the airline industry’s sensitivity to external factors such as fuel costs, regulatory changes, and travel demand fluctuations, the coming weeks will be critical in determining whether Interglobe Aviation can regain upward momentum or if the current bearish trend will persist.

Conclusion

Interglobe Aviation’s active call option market and the concentration of contracts at strike prices close to the current stock value reflect a nuanced market outlook. While recent price action has been subdued, the options data indicates that investors are positioning for potential upside ahead of the December expiry. This activity, coupled with increased delivery volumes, underscores the importance of closely monitoring the stock’s price movements and sector developments in the near term.

As the airline sector continues to navigate a complex operating environment, Interglobe Aviation remains a focal point for market participants seeking to balance risk and opportunity in their portfolios.

Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →