Interglobe Aviation Sees Heavy Call Option Activity Amidst Market Pressure

Market Performance and Sector Context

Interglobe Aviation’s share price has been under pressure, reflecting a seven-day consecutive decline that culminated in a total return drop of approximately 12.5% during this period. On 8 December 2025, the stock opened with a gap down of 4.85%, touching an intraday low of ₹5,001, which represents a 6.88% fall from the previous close. This movement contrasts with the broader airline sector, which recorded a decline of 3.74% on the same day, and the Sensex, which was relatively stable with a marginal 0.26% decrease.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend. However, investor participation has shown signs of rising interest, with delivery volumes on 5 December reaching 35.25 lakh shares, a surge of nearly 268% compared to the five-day average delivery volume. This heightened activity suggests that while the stock price is under pressure, market participants remain actively engaged.

Call Option Activity Highlights

Options data reveals that Interglobe Aviation is experiencing robust call option trading, particularly for contracts expiring on 30 December 2025. The most actively traded call options are clustered around strike prices ranging from ₹5,100 to ₹5,800, with substantial contract volumes and turnover figures.

At the ₹5,100 strike price, the highest number of contracts traded was recorded at 4,824, generating a turnover of ₹1,525.49 lakhs and an open interest of 878 contracts. This level is just below the current underlying stock price of ₹5,160, indicating that investors are positioning for a potential rebound or at least hedging against further volatility near the current market price.

Similarly, the ₹5,150 strike price saw 3,545 contracts traded with a turnover of ₹1,024.89 lakhs and an open interest of 751 contracts. The ₹5,250 strike price also attracted significant activity, with 3,304 contracts traded and a turnover of ₹681.20 lakhs, alongside an open interest of 482 contracts.

Higher strike prices such as ₹5,700 and ₹5,800 also recorded notable volumes, with 3,687 and 4,983 contracts traded respectively. However, turnover at these strikes was comparatively lower, at ₹144.23 lakhs and ₹138.20 lakhs, but open interest was considerably higher, standing at 3,297 and 3,812 contracts respectively. This suggests that some investors are taking longer-term bullish positions or hedging strategies anticipating a potential price recovery beyond the current levels by the December expiry.

Implications of Option Market Activity

The concentration of call option trades near and above the current stock price indicates a mixed but cautiously optimistic stance among market participants. The open interest figures at higher strike prices, particularly ₹5,700 and ₹5,800, suggest that some investors are anticipating a potential upside by the end of December, despite the recent downward momentum.

Open interest at these strikes being significantly higher than at lower strikes may also reflect hedging strategies by institutional players or traders seeking to capitalise on volatility. The relatively lower turnover at these higher strikes compared to the ₹5,100 and ₹5,150 strikes could imply that these positions are being held rather than actively traded, signalling longer-term views.

Meanwhile, the underlying stock’s liquidity supports sizeable trade volumes, with the stock’s average traded value allowing for trade sizes up to ₹31.2 crore based on 2% of the five-day average traded value. This liquidity is crucial for options traders who require efficient execution for large contracts.

Sectoral and Market Considerations

The airline sector has been facing headwinds due to a combination of factors including fluctuating fuel prices, regulatory challenges, and evolving travel demand patterns. Interglobe Aviation, as a large-cap leader in the sector with a market capitalisation of approximately ₹2,07,649 crore, remains a key bellwether for investor sentiment in this space.

While the stock’s recent performance has been subdued relative to the sector and broader market indices, the active call option interest suggests that investors are positioning for potential recovery scenarios or are employing complex strategies to manage risk amid uncertainty.

Outlook and Investor Considerations

Investors analysing Interglobe Aviation should consider the current market dynamics, including the stock’s recent price trajectory and the active options market positioning. The clustering of call options at strike prices near and above the current market price suggests that some market participants are anticipating a potential rebound or are hedging against volatility ahead of the December expiry.

Given the stock’s trading below all major moving averages and the sector’s recent performance, caution remains warranted. However, the elevated delivery volumes and liquidity indicate that the stock remains a focus for active traders and investors alike.

Ultimately, the interplay between the underlying stock’s price action and the options market activity provides valuable insight into market sentiment and potential future movements. Monitoring open interest changes and strike price concentrations in the coming weeks will be essential for investors seeking to understand evolving expectations for Interglobe Aviation.

Summary

Interglobe Aviation’s recent market activity highlights a complex environment where the stock faces downward pressure but remains a focal point for call option traders. The significant volumes and open interest at various strike prices ahead of the 30 December 2025 expiry reflect a blend of cautious optimism and hedging strategies. Investors should weigh these factors alongside sector trends and broader market conditions when assessing the stock’s outlook.

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