Interglobe Aviation Sees Heavy Call Option Activity Amid Bearish Stock Momentum

Robust Call Option Volumes Signal Investor Interest

On 23 January 2026, Interglobe Aviation Ltd recorded substantial call option volumes, particularly at the ₹4,900 and ₹5,000 strike prices expiring on 27 January 2026. The ₹4,900 strike saw 6,895 contracts traded, generating a turnover of ₹296.93 lakhs, while the ₹5,000 strike had 5,494 contracts traded with a turnover of ₹71.28 lakhs. Open interest stood at 2,759 and 4,081 contracts respectively, indicating sustained investor interest in these higher strike calls.

Given the underlying stock price of ₹4,832, these strike prices represent out-of-the-money calls, suggesting that traders are positioning for a potential rebound or volatility-driven gains in the near term. However, the elevated open interest at these levels also points to speculative activity or hedging strategies by institutional players.

Stock Performance and Technical Context

Interglobe Aviation’s stock price has recently experienced a reversal after two consecutive days of gains, closing down 1.46% on the day, slightly underperforming the airline sector’s 1.39% decline. The stock touched an intraday low of ₹4,722.5, a 3.8% drop from recent highs, reflecting some profit-taking or sector-specific headwinds.

Technically, the share price remains above its 5-day moving average but below the 20-day, 50-day, 100-day, and 200-day averages, indicating a mixed trend with short-term support but longer-term resistance. Rising investor participation is evident, with delivery volumes on 22 January reaching 8.35 lakh shares, a 17.28% increase over the five-day average, signalling heightened trading interest despite the recent price dip.

Fundamental and Market Sentiment Analysis

MarketsMOJO currently assigns Interglobe Aviation a Mojo Score of 33.0 and a Mojo Grade of Sell, downgraded from Hold on 3 December 2025. The downgrade reflects concerns over the company’s near-term outlook amid sector challenges such as fluctuating fuel costs, regulatory pressures, and competitive dynamics. The market cap grade is 1, underscoring the stock’s large-cap status but also its limited upside potential in the current environment.

Despite the bearish fundamental view, the active call option interest suggests that some investors are either speculating on a short-term recovery or employing options as part of complex hedging strategies. The contrast between the stock’s technical weakness and option market optimism highlights the nuanced positioning among market participants.

Expiry Patterns and Implications for Traders

The 27 January 2026 expiry date is attracting the bulk of call option activity, with the two most active strikes clustered near the current market price but slightly out-of-the-money. This pattern is typical of traders positioning for a potential short-term rally or hedging against downside risk in the underlying shares.

Open interest data reveals that the ₹5,000 strike has a higher open interest than the ₹4,900 strike, despite lower traded contracts on the day. This suggests that longer-term bullish bets or protective strategies may be concentrated at the higher strike, possibly anticipating a rebound above ₹5,000 in the coming weeks.

However, the stock’s recent underperformance relative to the sector and the downgrade by MarketsMOJO temper expectations. Investors should be cautious, as the option market’s bullish positioning may reflect speculative sentiment rather than a fundamental turnaround.

Liquidity and Trading Considerations

Interglobe Aviation remains a liquid stock, with a market capitalisation of approximately ₹1,87,013.44 crores, categorising it firmly as a large-cap. The stock’s liquidity supports sizeable trade sizes, with an average traded value sufficient to accommodate transactions up to ₹14.1 crores based on 2% of the five-day average traded value.

This liquidity is crucial for options traders, enabling efficient entry and exit from positions without significant price impact. The rising delivery volume further confirms active participation from institutional and retail investors alike.

Outlook and Investor Takeaways

Interglobe Aviation’s current market dynamics present a complex picture. The stock’s downgrade to a Sell rating by MarketsMOJO and recent price weakness suggest caution for long-term investors. Yet, the heavy call option activity at strikes above the current price indicates that some market participants are betting on a near-term recovery or volatility-driven opportunities.

Investors should weigh the fundamental challenges facing the airline sector, including fuel price volatility, regulatory uncertainties, and competitive pressures, against the technical signals and option market positioning. The stock’s mixed moving average profile and rising delivery volumes imply that while short-term trading interest is elevated, sustained upward momentum remains uncertain.

For those considering exposure to Interglobe Aviation, a prudent approach would be to monitor upcoming earnings, sector developments, and option expiry outcomes closely. The current option market activity could either presage a rebound or reflect speculative hedging amid ongoing volatility.

Summary

In summary, Interglobe Aviation Ltd is experiencing notable call option trading ahead of the 27 January 2026 expiry, with significant volumes at ₹4,900 and ₹5,000 strike prices. Despite a recent downgrade to Sell and a modest price decline, the option market reveals a degree of bullish speculation or hedging. Investors should remain cautious given the airline sector’s headwinds and the stock’s technical resistance levels, balancing short-term opportunities against longer-term risks.

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