Interglobe Aviation Sees Heavy Call Option Activity Amidst Market Volatility

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Interglobe Aviation, the parent company of IndiGo, has attracted significant attention in the options market with a surge in call option trading ahead of the December expiry. Despite a recent downward trend in its share price, the airline stock is witnessing notable bullish positioning through call options at various strike prices, signalling investor interest in potential upside moves over the coming weeks.

Overview of Call Option Activity

Interglobe Aviation’s call options expiring on 30 December 2025 have recorded substantial volumes, with multiple strike prices drawing heavy trading interest. The underlying stock, currently valued at ₹4,870.5, has seen call contracts traded predominantly at strike prices ranging from ₹4,900 to ₹5,400. This range notably sits above the current market price, indicating a degree of optimism among option traders regarding the stock’s potential recovery or rally in the near term.

The most actively traded call option is at the ₹4,900 strike, with 5,006 contracts exchanged, generating a turnover of approximately ₹1802.69 lakhs. This is closely followed by the ₹5,300 strike, which recorded 4,956 contracts with a turnover of ₹528.93 lakhs. Other significant strikes include ₹5,100 with 3,974 contracts and ₹5,400 with 3,410 contracts traded. The open interest figures further reinforce this activity, with the ₹5,300 strike showing an open interest of 4,713 contracts, suggesting sustained interest and potential accumulation at this level.

Expiry Patterns and Market Implications

All the highlighted call options share the same expiry date of 30 December 2025, indicating that traders are positioning themselves ahead of the year-end. This expiry timeline allows investors to factor in upcoming corporate developments, seasonal travel demand, and broader economic conditions that could influence Interglobe Aviation’s stock price.

Given the airline sector’s sensitivity to fuel prices, regulatory changes, and passenger traffic trends, the clustering of call option activity at strike prices above the current market value may reflect expectations of a rebound or positive catalysts emerging before the expiry. However, the underlying stock has been trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, which suggests that the recent price momentum has been subdued.

Price Performance and Sector Comparison

Interglobe Aviation’s stock has experienced a consecutive decline over the past eight trading sessions, with cumulative returns falling by approximately 16.92% during this period. Despite this, the stock marginally outperformed its sector on the most recent trading day, registering a decline of 0.68% compared to the airline sector’s 0.76% fall and the Sensex’s 0.74% drop. This relative resilience may be a factor behind the active call option interest, as investors weigh the stock’s potential to stabilise or recover.

Liquidity metrics indicate that Interglobe Aviation remains sufficiently liquid for sizeable trades, with delivery volumes on 8 December reaching 76.79 lakh shares — a rise of over 373% compared to the five-day average. The stock’s market capitalisation stands at ₹1,90,456 crores, categorising it as a large-cap entity within the airline sector.

Investor Sentiment and Open Interest Insights

The open interest data across the various strike prices provides insight into investor sentiment. The highest open interest is concentrated at the ₹5,300 strike with 4,713 contracts, followed by ₹5,100 with 2,612 contracts and ₹5,400 with 5,805 contracts. These figures suggest that traders are positioning for a potential upward move beyond the current price level of ₹4,870.5.

Notably, the ₹4,950 strike, despite having a lower open interest of 1,183 contracts, recorded a turnover of ₹1,193.10 lakhs, indicating active trading and possibly short-term speculative interest. The combination of high turnover and open interest at strikes above the current market price points to a bullish tilt in the options market, even as the underlying stock faces downward pressure.

Outlook for Interglobe Aviation

While the stock’s recent price action has been subdued, the options market activity reveals a nuanced picture. The concentration of call option trades at strikes above the current price suggests that market participants are anticipating a recovery or positive developments in the airline’s fundamentals or broader market conditions before the December expiry.

Investors should consider the broader context of the airline industry, which remains vulnerable to external factors such as fuel cost fluctuations, geopolitical tensions, and regulatory changes. Additionally, seasonal travel demand during the year-end period could influence Interglobe Aviation’s operational performance and, by extension, its stock price trajectory.

Conclusion

Interglobe Aviation’s options market activity ahead of the 30 December expiry highlights a significant degree of bullish positioning, with call options at strike prices above the current market value attracting the most interest. This suggests that despite recent price declines and trading below key moving averages, investors are positioning for a potential rebound or positive catalyst in the near term.

Market participants should continue to monitor both the underlying stock’s price action and broader sector developments, as well as open interest trends in the options market, to gauge evolving sentiment and potential trading opportunities.

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