Interglobe Aviation Sees Heavy Put Option Activity Amidst Bearish Market Sentiment

Put Option Activity Highlights

Data from recent trading sessions reveals that Interglobe Aviation's put options have attracted notable volumes, particularly for contracts expiring on 30 December 2025. The strike price of ₹5,300 stands out with 4,143 contracts traded, generating a turnover of approximately ₹1555.4 lakhs and an open interest of 1,848 contracts. This level is significantly above the current underlying stock value of ₹5,166, indicating a hedging or bearish stance at this price point.

Other strike prices with active put option trading include ₹5,400, ₹4,950, ₹4,850, and ₹4,600. The ₹5,400 strike saw 1,860 contracts traded with a turnover of ₹855.2 lakhs and an open interest of 2,161 contracts. The ₹4,950 strike recorded 2,735 contracts traded, turnover of ₹431.5 lakhs, and open interest of 673 contracts. Meanwhile, the ₹4,850 and ₹4,600 strikes had 1,885 and 2,783 contracts traded respectively, with turnovers of ₹231.2 lakhs and ₹179.3 lakhs, and open interests of 481 and 1,108 contracts.

Stock Performance and Market Context

Interglobe Aviation's stock has been under pressure, reflecting broader sectoral trends and company-specific factors. The stock has recorded a consecutive seven-day decline, resulting in a cumulative return of -12.54% over this period. On 8 December 2025, the stock opened with a gap down of -4.85% and touched an intraday low of ₹5,001, marking a 6.88% drop from the previous close.

Technical indicators show that Interglobe Aviation is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained bearish momentum. This technical positioning aligns with the observed put option activity, suggesting that investors are either hedging existing long positions or speculating on further downside.

The airline sector itself has experienced a decline of -3.74% on the day, with Interglobe Aviation's 1-day return of -4.05% slightly underperforming the sector average. The broader Sensex index showed a marginal fall of -0.26%, indicating that the airline sector's weakness is more pronounced relative to the overall market.

Investor Participation and Liquidity

Investor engagement in Interglobe Aviation has shown signs of rising interest despite the bearish trend. Delivery volumes on 5 December 2025 surged to 35.25 lakh shares, representing a 267.98% increase compared to the 5-day average delivery volume. This heightened participation may reflect active repositioning by investors in response to recent price movements and option market signals.

Liquidity remains adequate for sizeable trades, with the stock's average traded value supporting a trade size of approximately ₹31.2 crore based on 2% of the 5-day average traded value. This level of liquidity facilitates efficient execution for institutional and retail investors alike.

Expiry Patterns and Strike Price Distribution

The concentration of put option contracts around the ₹5,300 and ₹5,400 strike prices, both above the current stock price, suggests a focus on downside protection or bearish speculation near recent trading levels. The presence of significant open interest at these strikes indicates that traders are actively positioning for potential declines or volatility ahead of the December expiry.

Lower strike prices such as ₹4,950, ₹4,850, and ₹4,600 also show meaningful activity, albeit with smaller open interest figures. This spread of strike prices across a range below and slightly above the current market price reflects a layered approach to risk management and speculative positioning by market participants.

Sectoral and Market Implications

Interglobe Aviation's put option activity and price behaviour are consistent with the airline sector's recent performance. The sector's decline of -3.74% on the day and the stock's underperformance relative to the Sensex highlight ongoing challenges, including fuel cost pressures, regulatory factors, and demand fluctuations.

Given the stock's large market capitalisation of approximately ₹2,07,649 crore, movements in Interglobe Aviation carry significant weight within the airline sector and broader market indices. The observed option market dynamics may serve as an early indicator of investor sentiment and risk appetite towards the sector in the near term.

Outlook and Investor Considerations

Investors analysing Interglobe Aviation should consider the implications of the heavy put option volumes and the stock’s technical positioning below key moving averages. The option market activity suggests a cautious or bearish stance among traders, which may reflect expectations of continued volatility or downside risk in the near term.

At the same time, rising delivery volumes indicate active investor engagement, which could lead to increased price discovery and potential opportunities for those monitoring sector developments closely. The airline industry’s sensitivity to macroeconomic factors such as fuel prices, travel demand, and regulatory changes remains a critical consideration for market participants.

Given the stock’s liquidity and large-cap status, Interglobe Aviation remains a focal point for both institutional and retail investors seeking exposure to the airline sector, albeit with a need for careful risk management amid current market conditions.

Summary

Interglobe Aviation’s recent trading patterns reveal a pronounced interest in put options across multiple strike prices, particularly those near and above the current stock price. This activity, combined with the stock’s technical weakness and sectoral headwinds, points to a market environment where bearish positioning and hedging strategies are prominent.

Investors should weigh these factors alongside broader market trends and company fundamentals when considering their exposure to Interglobe Aviation and the airline sector as a whole.

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