Interglobe Aviation Sees Robust Call Option Activity Amid Mixed Technical Signals

Robust Call Option Volumes Signal Investor Interest

On 1 January 2026, Interglobe Aviation Ltd (stock code 455546) emerged as the most active stock in call options trading, particularly for contracts expiring on 27 January 2026. The strike prices of ₹5,100 and ₹5,200 dominated the activity, with 3,023 and 4,035 contracts traded respectively. This translated into a combined turnover exceeding ₹13.46 crores, underscoring the substantial capital flow into bullish bets on the airline giant.

The open interest figures further reinforce this trend, with 1,838 contracts outstanding at the ₹5,100 strike and 2,593 at ₹5,200. Given the underlying stock price of ₹5,116 at the time, these strike prices suggest that traders are positioning for a moderate to significant upward move in the stock price over the next few weeks.

Stock Performance and Technical Context

Interglobe Aviation’s stock price has been on a modest upward trajectory, gaining 1.65% over the past two days and registering a 1.08% return on the day of reporting. The stock touched an intraday high of ₹5,175, marking a 2.28% increase from its previous close. This performance is broadly in line with the airline sector’s 1.19% gain and outpaces the Sensex’s 0.15% rise, indicating relative strength within its industry group.

However, technical indicators present a mixed picture. The stock currently trades above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This suggests that while short-term momentum is positive, longer-term trends remain subdued, possibly reflecting broader sector challenges or market caution.

Investor participation appears to be waning slightly, with delivery volumes falling by 2.77% to 5.09 lakh shares on 31 December compared to the five-day average. Despite this, liquidity remains adequate, supporting trade sizes up to ₹9.13 crores based on 2% of the five-day average traded value.

Mojo Score Downgrade Reflects Caution

Despite the bullish activity in the options market, Interglobe Aviation’s fundamental outlook has recently deteriorated. The company’s Mojo Score stands at 33.0, categorised as a Sell, a downgrade from its previous Hold rating as of 3 December 2025. This downgrade reflects concerns over the company’s market cap grade, which remains at a low 1, and possibly other financial or operational metrics not immediately visible in the options data.

With a market capitalisation of ₹1,95,532 crores, Interglobe Aviation is a large-cap stock, yet the downgrade signals that investors and analysts are increasingly cautious about its near-term prospects. This divergence between derivatives market optimism and fundamental caution is noteworthy and suggests that traders may be speculating on short-term price movements rather than long-term value creation.

Expiry Patterns and Strike Price Concentration

The concentration of call option activity at the ₹5,100 and ₹5,200 strike prices for the 27 January expiry indicates a clear focus on the stock’s ability to sustain or surpass current levels within the next four weeks. The higher open interest at ₹5,200 suggests that more traders expect the stock to breach this level, which would represent a roughly 1.6% gain from the underlying price of ₹5,116.

Such positioning is typical ahead of quarterly earnings announcements or sectoral developments that could act as catalysts. Given the airline sector’s sensitivity to fuel prices, regulatory changes, and travel demand, these options trades may be hedging against or speculating on upcoming news flow.

Sectoral and Market Context

The airline sector has shown resilience in recent sessions, with the sector index outperforming the broader Sensex. Interglobe Aviation’s performance aligns with this trend, although its technical indicators suggest it has yet to fully capitalise on the sector’s momentum. The stock’s liquidity and active options market make it a preferred choice for traders seeking exposure to the airline industry’s recovery narrative.

However, the falling delivery volumes and the Mojo downgrade caution investors to weigh the risks carefully. The mixed signals imply that while short-term trading opportunities exist, longer-term investors should remain vigilant and monitor fundamental developments closely.

Investor Takeaway

Interglobe Aviation Ltd’s active call option market highlights a strong speculative interest in the stock’s near-term upside potential. The significant volumes and open interest at strikes just above the current market price indicate that traders are betting on a positive price movement before the January expiry. However, the fundamental downgrade and mixed technical signals counsel caution.

Investors should consider the broader airline sector dynamics, company-specific developments, and upcoming earnings before making directional bets. The stock’s liquidity and active derivatives market provide ample opportunities for tactical trading, but longer-term investors may want to await clearer signs of sustained recovery or improvement in fundamentals.

Overall, Interglobe Aviation remains a stock to watch closely, balancing the optimism reflected in options activity against the caution signalled by its Mojo Score and technical indicators.

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