Interglobe Aviation Sees Heavy Put Option Activity Amid Bearish Sentiment

Put Option Surge at Key Strike Prices

Data from the derivatives market reveals that Interglobe Aviation Ltd (stock code 455546) has emerged as one of the most actively traded stocks in put options for the expiry dated 27 January 2026. The underlying stock, trading at ₹5,115 as of 1 January 2026, saw substantial put option volumes at the ₹5,000 and ₹5,100 strike prices. Specifically, 1,545 contracts were traded at the ₹5,000 strike, generating a turnover of ₹174.53 lakhs, while 1,259 contracts changed hands at the ₹5,100 strike, with a turnover of ₹209.34 lakhs.

Open interest figures further underscore the bearish positioning, with 5,071 contracts outstanding at the ₹5,000 strike and 960 at ₹5,100. This concentration of open interest near the current market price indicates that traders are either hedging existing long positions or speculating on a potential downside move in the near term.

Stock Performance and Market Context

Interglobe Aviation’s stock has shown resilience with a 1.08% gain on the day, slightly underperforming the broader airline sector’s 1.19% rise and outperforming the Sensex’s modest 0.15% advance. The stock has recorded gains over the past two consecutive sessions, delivering a 1.65% return in that period. Intraday, the share price touched a high of ₹5,175, marking a 2.28% increase from the previous close.

However, technical indicators present a mixed picture. The stock price remains above its 5-day moving average but continues to trade below its 20-day, 50-day, 100-day, and 200-day moving averages, signalling that the short-term momentum is positive but longer-term trends remain subdued. Additionally, investor participation appears to be waning, with delivery volumes on 31 December falling by 2.77% compared to the five-day average, suggesting some hesitation among buyers.

Market Capitalisation and Mojo Ratings

Interglobe Aviation is classified as a large-cap stock with a market capitalisation of ₹1,95,532 crores. Despite its size and sector leadership, the company’s Mojo Score has deteriorated to 33.0, reflecting a Sell rating as of 3 December 2025, down from a previous Hold grade. The Market Cap Grade stands at 1, indicating relatively low quality or momentum compared to peers. This downgrade aligns with the increased put option activity, signalling growing investor caution.

Implications of Put Option Activity

The heavy put option volumes at strike prices just below and near the current market price suggest that investors are positioning for a potential correction or increased volatility in Interglobe Aviation’s shares. Put options serve as a hedge against downside risk or as a speculative bet on price declines. The concentration of open interest at ₹5,000 and ₹5,100 strikes indicates that these levels are viewed as critical support zones by market participants.

Given the airline sector’s sensitivity to fuel prices, regulatory changes, and macroeconomic factors such as travel demand recovery post-pandemic, the cautious stance is understandable. While the stock has shown short-term strength, the broader technical and fundamental signals point to a need for vigilance.

Expiry Patterns and Investor Behaviour

The expiry date of 27 January 2026 is approaching, and the clustering of put options at these strike prices often leads to increased volatility as traders adjust or unwind positions. Open interest data suggests that a significant number of contracts remain outstanding, which could translate into price swings as expiry nears. Investors should monitor the stock’s price action closely around these levels to gauge market sentiment and potential support or resistance.

Sector and Peer Comparison

Interglobe Aviation’s performance is broadly in line with the airline sector, which has been experiencing a mixed recovery amid fluctuating travel demand and cost pressures. The stock’s liquidity remains robust, with a trading capacity of approximately ₹9.13 crores based on 2% of the five-day average traded value, ensuring that investors can enter or exit positions without significant market impact.

However, the downgrade in Mojo Grade from Hold to Sell and the low Market Cap Grade highlight concerns relative to peers. Investors may want to consider alternative stocks within the sector or broader market that offer stronger fundamentals or more favourable technical setups.

Investor Takeaway

For investors in Interglobe Aviation Ltd, the current put option activity serves as a cautionary signal. While the stock has shown some resilience in recent sessions, the elevated bearish positioning and technical indicators suggest that downside risks remain. Those holding long positions may consider protective hedging strategies, while prospective buyers should await clearer confirmation of trend reversal or sustained strength.

Given the airline sector’s inherent volatility and sensitivity to external factors, maintaining a balanced portfolio approach and monitoring open interest and expiry dynamics will be crucial in navigating the coming weeks.

Conclusion

Interglobe Aviation’s heavy put option trading ahead of the January expiry highlights a growing wariness among market participants. The stock’s recent gains are tempered by technical resistance and a downgrade in quality ratings, reinforcing the need for prudent risk management. As expiry approaches, investors should closely watch price movements around the ₹5,000 and ₹5,100 strike prices, which are likely to be pivotal in determining the stock’s near-term trajectory.

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