Put Option Activity Highlights
On 30 December 2025 expiry, Interglobe Aviation’s put options at strike prices ₹5,000 and ₹5,050 emerged as the most actively traded contracts. The ₹5,000 strike saw 2,755 contracts traded, generating a turnover of ₹8.76 lakhs and an open interest of 5,165 contracts. Meanwhile, the ₹5,050 strike recorded 1,767 contracts traded with a turnover of ₹39.36 lakhs and an open interest of 819 contracts. These figures underscore a pronounced preference for downside protection or speculative bearish bets near the current underlying value of ₹5,036.5.
The substantial open interest at the ₹5,000 strike, in particular, suggests that market participants are positioning for potential declines below this psychological support level. The heavy put volume and turnover indicate that traders are either hedging existing long exposures or speculating on a near-term correction in the airline stock.
Price and Technical Context
Interglobe Aviation’s share price has been trading in a narrow range of ₹32.5 on the day, reflecting limited directional momentum. However, the stock is currently trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish technical setup. This persistent weakness in price trends is likely contributing to the increased demand for put options as investors seek downside protection.
Investor participation has also waned, with delivery volumes on 29 December falling sharply by 78.79% to 3.92 lakh shares compared to the five-day average. This decline in active buying interest further supports the cautious stance among market participants.
Sector and Market Comparison
While Interglobe Aviation’s one-day return was -0.93%, the broader airline sector declined by 1.30%, and the Sensex was relatively flat, down just 0.08%. This relative outperformance, albeit modest, may reflect some resilience in the stock despite the bearish option positioning. Nevertheless, the overall sector weakness and subdued market conditions are likely weighing on investor sentiment.
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Fundamental and Rating Overview
Interglobe Aviation is classified as a large-cap company with a market capitalisation of ₹1,96,605 crores. Despite its size and sector leadership, the company’s Mojo Score currently stands at 33.0, reflecting a Sell rating. This represents a downgrade from a previous Hold rating on 3 December 2025, indicating a deterioration in the stock’s fundamental and technical outlook.
The company’s Market Cap Grade is rated 1, signalling limited upside potential relative to its valuation and sector peers. This downgrade aligns with the increased put option activity, as investors appear to be factoring in near-term risks and potential downside.
Expiry Patterns and Investor Behaviour
The concentration of put option trades at the 30 December 2025 expiry suggests that investors are focusing on short-term risk management. The expiry date coincides with the end of the calendar year, a period often marked by portfolio rebalancing and risk reassessment. The elevated open interest at the ₹5,000 strike price highlights a key level where traders expect significant price action or support to be tested.
Such patterns are typical when market participants anticipate volatility or seek to hedge against adverse moves in a stock that has shown technical weakness and declining investor participation. The relatively high turnover in put options compared to calls further emphasises a bearish tilt in market sentiment.
Outlook and Investor Implications
Given the current technical and fundamental backdrop, investors should approach Interglobe Aviation with caution. The combination of a Sell rating, deteriorating moving averages, and heavy put option activity points to a cautious or bearish near-term outlook. Traders holding long positions may consider protective strategies such as buying puts or tightening stop-loss levels to mitigate downside risk.
Conversely, speculative investors might view the elevated put volumes as an opportunity to capitalise on potential volatility, either through directional bets or option spreads. However, the narrow trading range and falling delivery volumes suggest that any significant price moves may require fresh catalysts or sector developments.
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Conclusion
Interglobe Aviation’s recent surge in put option activity at key strike prices ahead of the 30 December expiry highlights a growing bearish sentiment among investors. The stock’s technical weakness, combined with a downgrade to a Sell rating and falling investor participation, suggests that downside risks are being actively hedged or speculated upon.
While the airline sector remains volatile, the current data points to a cautious stance on Interglobe Aviation in the near term. Investors should monitor option open interest and price action closely for signs of a potential reversal or further deterioration. Strategic use of options may provide effective risk management tools in this environment.
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