Put Option Activity Highlights
Data from the derivatives market shows that Interglobe Aviation's put options expiring on 30 December 2025 have attracted substantial volumes, particularly at strike prices ranging from ₹5,000 to ₹5,600. The most actively traded put contract is at the ₹5,300 strike, with 3,846 contracts exchanged, generating a turnover of approximately ₹341.12 lakhs. This is followed by the ₹5,200 strike, which saw 2,943 contracts traded, amounting to a turnover of ₹183.99 lakhs.
Other notable strikes include ₹5,600 with 2,024 contracts traded and a turnover of ₹552.28 lakhs, ₹5,450 with 2,063 contracts and ₹321.64 lakhs turnover, and ₹5,000 with 2,184 contracts traded generating ₹66.01 lakhs in turnover. The open interest figures further underline the interest in these strikes, with the ₹5,600 put holding an open interest of 1,539 contracts and the ₹5,000 strike at 1,250 contracts.
Market Context and Price Movements
Interglobe Aviation's underlying stock price stood at ₹5,545.50 at the time of this analysis. The stock has been on a downward trajectory, recording a consecutive five-day decline that has resulted in a cumulative return of -6.48% over this period. On 3 December, the stock touched an intraday low of ₹5,405, reflecting a 3.4% drop from recent levels.
Technical indicators show that the stock price remains above its 200-day moving average, suggesting some long-term support. However, it is trading below its 5-day, 20-day, 50-day, and 100-day moving averages, indicating short- to medium-term weakness. Investor participation has risen notably, with delivery volumes reaching 7.13 lakh shares on 3 December, a 70.57% increase compared to the five-day average delivery volume.
Liquidity conditions remain adequate, with the stock's traded value supporting trade sizes up to ₹8.34 crore based on 2% of the five-day average traded value, making it accessible for institutional and retail investors alike.
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Bearish Positioning and Hedging Strategies
The concentration of put option activity at strike prices below the current market value suggests that market participants are either hedging existing long positions or speculating on a potential decline in Interglobe Aviation’s share price. The highest open interest at the ₹5,600 and ₹5,300 strikes indicates that these levels are viewed as significant by traders, possibly serving as key support zones or reference points for risk management.
Put options provide investors with the right to sell shares at predetermined prices, offering protection against downside moves. The elevated turnover and open interest in these contracts imply that a sizeable portion of the market is preparing for volatility or downside risk in the near term, particularly as the December expiry approaches.
Given the airline sector’s sensitivity to factors such as fuel prices, regulatory changes, and travel demand fluctuations, the current option market activity may reflect broader concerns about sectoral headwinds. Interglobe Aviation, as a leading player with a market capitalisation of ₹2,16,417 crore, remains a focal point for investors seeking to manage exposure amid uncertain conditions.
Comparative Sector and Market Performance
On the day under review, Interglobe Aviation’s stock recorded a decline of 1.01%, slightly underperforming the airline sector’s 0.80% fall. The broader Sensex index showed a marginal gain of 0.10%, highlighting a divergence between the stock’s performance and the overall market trend.
This relative weakness in Interglobe Aviation’s shares, coupled with the put option activity, may indicate a cautious stance among investors. The stock’s positioning below multiple moving averages reinforces the notion of short-term pressure, while the long-term moving average support could provide a floor if market conditions stabilise.
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Outlook and Investor Considerations
Investors monitoring Interglobe Aviation should consider the implications of the current option market dynamics alongside the stock’s price action and sector trends. The active put option interest at multiple strike prices below the current market level suggests that downside protection is a priority for many market participants.
While the stock’s long-term moving average support may offer some resilience, the short-term technical indicators and recent price declines point to a cautious environment. Factors such as fuel cost volatility, regulatory developments, and travel demand recovery will continue to influence the airline’s performance and investor sentiment.
Given the liquidity profile and rising investor participation, Interglobe Aviation remains a stock of interest for both hedging strategies and speculative positioning. Market participants should closely watch the December expiry to gauge whether the current bearish positioning translates into further price adjustments or stabilisation.
Summary
Interglobe Aviation’s derivatives market activity reveals a pronounced focus on put options with strikes ranging from ₹5,000 to ₹5,600, reflecting a cautious or bearish stance among traders. The stock’s recent price behaviour, combined with technical indicators and sector performance, underscores a period of uncertainty for the airline. Investors are advised to consider these factors carefully when assessing their exposure to this large-cap airline stock.
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