Overview of Put Option Activity
Data from recent trading sessions reveals that Interglobe Aviation's put options have been among the most actively traded contracts on the National Stock Exchange. The underlying stock, trading at ₹4,933 as of the latest session, has seen substantial volumes in put options with strike prices clustered around ₹4,500 to ₹4,900. The most active strike price was ₹4,900, with 3,091 contracts traded, generating a turnover of approximately ₹475.01 lakhs and an open interest of 3,266 contracts. This was closely followed by the ₹4,800 strike, which recorded 2,772 contracts traded and a turnover of ₹273.51 lakhs, alongside an open interest of 4,189 contracts.
Other notable strike prices include ₹4,500 and ₹4,700, with 1,974 and 1,866 contracts traded respectively. The ₹4,500 strike has the highest open interest among these, standing at 5,423 contracts, indicating a significant number of outstanding positions at this level. The turnover for this strike was ₹57.00 lakhs, while the ₹4,700 strike saw a turnover of ₹119.46 lakhs with an open interest of 2,818 contracts.
Expiry Patterns and Market Implications
All these put options are set to expire on 30 December 2025, which is the standard monthly expiry date for equity derivatives. The concentration of open interest and trading volumes in put options at strike prices below and near the current market price suggests that market participants may be positioning for potential downside risk or seeking protection against adverse price movements in Interglobe Aviation shares.
Such activity often reflects a cautious stance by investors, possibly anticipating volatility or a correction in the airline sector. Given that Interglobe Aviation is a large-cap stock with a market capitalisation of ₹1,87,916 crores, movements in its options market can have broader implications for sector sentiment.
Stock Performance and Technical Context
On the day of analysis, Interglobe Aviation's stock price showed a gain of 1.90%, outperforming the airline sector's 1.34% rise and contrasting with the Sensex's decline of 0.49%. The stock has recorded gains over the last three consecutive days, accumulating a return of 2.11% during this period. However, it is noteworthy that the share price remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating that the short to long-term technical trend remains subdued.
Investor participation appears to be waning, with delivery volumes on 12 December falling by 57.88% compared to the five-day average, registering 17.58 lakh shares delivered. Despite this, liquidity remains adequate, with the stock supporting trade sizes up to ₹89.09 crores based on 2% of the five-day average traded value.
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Investor Sentiment and Hedging Strategies
The prominence of put options trading at strike prices close to the current market value suggests that investors may be employing these instruments either to hedge existing long positions or to speculate on potential price declines. The open interest data indicates that a considerable number of contracts remain outstanding, which could translate into increased volatility as expiry approaches.
Put options at the ₹4,900 and ₹4,800 strikes, which are just below and near the current stock price, are particularly significant. These levels may be viewed as critical support zones by market participants. The sizeable turnover and open interest at these strikes imply that traders are actively managing risk or positioning for possible downside scenarios in the near term.
Sectoral Context and Broader Market Trends
Interglobe Aviation operates within the airline industry, a sector that has experienced fluctuating demand and operational challenges in recent years. The current market environment, including fuel price volatility and regulatory developments, continues to influence investor outlook. The stock’s recent performance relative to the sector and benchmark indices reflects a mixed sentiment, with some resilience amid broader market pressures.
Given the stock’s large-cap status and liquidity profile, the options market activity provides valuable insight into institutional and retail investor behaviour. The observed patterns in put option trading may serve as an early indicator of market expectations for Interglobe Aviation’s near-term price trajectory.
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Outlook and Considerations for Investors
As the 30 December expiry date approaches, market participants will closely monitor the evolving open interest and volume trends in Interglobe Aviation’s options. The concentration of put option activity at strike prices near the current market level may influence price dynamics, particularly if these positions are unwound or exercised.
Investors should also consider the broader technical context, including the stock’s position relative to key moving averages and recent delivery volumes, when assessing potential risk and reward scenarios. The interplay between options market positioning and underlying stock performance often provides a nuanced view of market sentiment and potential price movements.
In summary, the active put option trading in Interglobe Aviation highlights a cautious or hedging stance among investors, reflecting a complex outlook for the airline sector amid ongoing market uncertainties.
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