Interglobe Aviation Sees Heavy Put Option Activity Amid Bearish Market Sentiment

Put Option Activity Highlights

Data from the derivatives market reveals that Interglobe Aviation’s put options expiring on 30 December 2025 have been among the most actively traded contracts. The strike price of ₹4,800 recorded the highest number of contracts traded at 7,443, generating a turnover of approximately ₹1728.6 lakhs. This was closely followed by the ₹4,700 strike with 6,222 contracts traded and a turnover exceeding ₹1,035.8 lakhs.

Other notable strike prices include ₹4,500, where 5,913 contracts were traded with a turnover of ₹490 lakhs, and ₹4,600, which saw 4,513 contracts traded, amounting to ₹533.7 lakhs in turnover. The ₹4,750 strike price also attracted 3,289 contracts with a turnover of ₹643.6 lakhs. Open interest figures further underscore the concentration of bearish positioning, with the ₹4,500 strike holding the highest open interest at 6,518 contracts, followed by ₹4,600 at 3,397 and ₹4,800 at 4,666 contracts.

Market Context and Stock Performance

Interglobe Aviation’s underlying stock price has been under pressure in recent sessions. The stock has recorded a consecutive two-day decline, with cumulative returns falling by 3.92%. On 11 December 2025, the share opened with a gap down of 3.24%, touching an intraday low of ₹4,645, which represents a 3.34% drop from the previous close. The stock’s performance has marginally outperformed the airline sector by 0.4% on the day, though it lagged behind the broader Sensex index, which declined by 0.23%.

Technical indicators show that Interglobe Aviation is trading below its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning often reflects a cautious or bearish outlook among traders and investors. Additionally, delivery volumes have shown a decline, with 32.17 lakh shares delivered on 10 December, down 11% compared to the five-day average delivery volume, suggesting a reduction in investor participation.

Implications of Put Option Interest

The surge in put option contracts at strike prices near and slightly below the current market price indicates that market participants may be seeking protection against further downside or speculating on a potential decline in Interglobe Aviation’s share price. The concentration of open interest at the ₹4,500 and ₹4,800 strikes suggests that traders are hedging against a range of possible price movements, with a focus on downside risk management.

Put options serve as a tool for investors to limit losses or capitalise on bearish expectations. The elevated turnover and open interest in these contracts imply that market participants are actively positioning for volatility or a potential correction in the airline stock. This activity is consistent with the broader market environment, where airline stocks have faced headwinds due to fluctuating fuel costs, regulatory challenges, and evolving travel demand patterns.

Sector and Market Capitalisation Overview

Interglobe Aviation operates within the airline industry, a sector known for its sensitivity to economic cycles and external shocks. The company holds a large-cap status with a market capitalisation of approximately ₹1,85,886 crores, positioning it as a key player in the Indian aviation market. Despite recent price pressures, the stock remains liquid, with a trading capacity estimated at ₹93.78 crores based on 2% of the five-day average traded value, facilitating sizeable transactions without significant market impact.

Comparatively, the airline sector has experienced mixed returns, with Interglobe Aviation’s one-day return of -1.05% slightly underperforming the sector’s -0.77% and the Sensex’s -0.23% on the same day. This relative underperformance may be contributing to the heightened put option activity as investors seek to mitigate risk or capitalise on anticipated volatility.

Expiry Patterns and Investor Behaviour

The December 30 expiry date for these put options is a critical factor influencing trading volumes. As the expiry approaches, option traders often adjust their positions to manage risk or lock in profits. The clustering of contracts around strike prices close to the current market value suggests that investors are actively recalibrating their exposure to Interglobe Aviation’s stock price movements in the near term.

Open interest data indicates that the ₹4,500 strike price is a focal point for hedging activity, with 6,518 contracts outstanding. This level may be viewed as a key support threshold by market participants. Meanwhile, the ₹4,800 strike, with 4,666 contracts open, reflects a zone where traders anticipate potential resistance or are seeking protection against moderate declines.

Investor Sentiment and Outlook

The current put option activity around Interglobe Aviation reflects a cautious investor stance amid ongoing market uncertainties. The airline sector’s exposure to fuel price fluctuations, regulatory developments, and demand variability continues to influence trading behaviour. The stock’s positioning below key moving averages and the recent decline in delivery volumes further highlight a tempered market outlook.

While the put option interest suggests a defensive posture, it also provides insight into potential price levels that investors are monitoring closely. The strike prices with the highest open interest may serve as psychological support and resistance zones in the coming weeks. Market participants will be watching closely for any shifts in fundamentals or broader market trends that could alter the current sentiment.

Overall, the derivatives market activity offers a valuable lens into the risk management strategies employed by investors in Interglobe Aviation, signalling a preference for downside protection as the year-end approaches.

Conclusion

Interglobe Aviation’s put option market activity underscores a significant degree of bearish positioning and hedging ahead of the December expiry. The concentration of contracts at strike prices near the current stock level, combined with the stock’s recent price performance and technical indicators, suggests that investors are preparing for potential volatility or downside risk. As the airline sector navigates a complex operating environment, monitoring derivatives activity alongside price movements will remain crucial for understanding market sentiment and investor behaviour.

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