Interglobe Aviation Sees Surge in Call Option Activity Ahead of January Expiry

Robust Call Option Activity Highlights Investor Interest

On 19 January 2026, Interglobe Aviation Ltd emerged as the most active stock in call options trading, with the 4900 strike price call options expiring on 27 January 2026 attracting significant volumes. A total of 9,102 contracts changed hands, generating a turnover of ₹1,408.58 lakhs. The open interest at this strike stands at 3,224 contracts, underscoring sustained investor interest in this price level.

The underlying stock price at the time was ₹4,881.5, just shy of the 4900 strike, indicating that traders are positioning for a potential upside move in the near term. This activity suggests a bullish tilt among options traders, who appear to be anticipating a rally that could push the stock above this key strike price before expiry.

Price Performance and Technical Context

Interglobe Aviation’s stock price has been gaining momentum over the past two days, delivering a cumulative return of 3.2%. On the day of reporting, the stock touched an intraday high of ₹4,920, marking a 3.8% increase from its previous close. This performance aligns closely with the broader airline sector, which gained 2.5% on the same day, while the Sensex declined by 0.52%, highlighting the sector’s relative strength.

From a technical standpoint, the stock is trading above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This positioning indicates short-term strength but suggests that longer-term momentum has yet to fully recover. The recent upward price movement could be an early indication of a trend reversal, but investors should remain cautious given the mixed signals.

Sector Dynamics and Investor Participation

The airline industry has been experiencing a gradual recovery, supported by easing travel restrictions and improving passenger demand. Interglobe Aviation, as a market leader with a large-cap valuation of ₹1,88,656.46 crores, is well positioned to benefit from this trend. However, investor participation in the stock has shown signs of moderation. Delivery volumes on 16 January stood at 7.19 lakhs shares, representing a 2.6% decline compared to the five-day average delivery volume, indicating some hesitation among long-term holders.

Liquidity remains adequate, with the stock’s traded value supporting trade sizes up to ₹10.92 crores based on 2% of the five-day average traded value. This liquidity ensures that institutional and retail investors can execute sizeable trades without significant market impact.

Mojo Score Downgrade Reflects Caution Despite Positive Option Flows

Despite the bullish positioning in the options market, Interglobe Aviation’s mojo score was downgraded from Hold to Sell on 3 December 2025, with the current mojo score standing at 33.0. The downgrade reflects concerns over the company’s fundamental outlook, possibly linked to rising fuel costs, competitive pressures, or broader macroeconomic uncertainties affecting the airline sector.

The market cap grade remains at 1, indicating the company’s large-cap status but also signalling limited upside potential from a valuation perspective. This divergence between technical optimism in the options market and fundamental caution from mojo ratings suggests that investors should weigh both perspectives carefully before making investment decisions.

Expiry Patterns and Strike Price Significance

The concentration of call option activity at the 4900 strike price for the 27 January expiry is particularly noteworthy. This strike is just above the current market price, implying that traders expect the stock to breach this level within the next week. Such positioning often reflects speculative bets on short-term catalysts or technical breakouts.

Open interest at this strike remains robust, which could lead to increased volatility as expiry approaches. Traders holding these options may look to exercise or close positions depending on price movements, potentially amplifying intraday swings.

Comparative Sector Performance and Outlook

Within the airline sector, Interglobe Aviation’s performance is broadly in line with peers, with the sector gaining 2.5% on the day. However, the stock’s 1-day return of 2.95% slightly trails the sector’s 3.09% gain, indicating a marginal underperformance relative to its peers. This subtle lag may be attributed to the recent mojo downgrade and investor caution.

Looking ahead, the airline industry’s recovery trajectory remains dependent on factors such as fuel price stability, regulatory developments, and passenger demand trends. Interglobe Aviation’s large-cap status and market leadership provide a competitive advantage, but investors should monitor fundamental developments closely alongside technical signals.

Investor Takeaway: Balancing Bullish Options Activity with Fundamental Risks

Interglobe Aviation Ltd’s recent surge in call option volumes at the 4900 strike price expiry on 27 January 2026 highlights a clear bullish sentiment among traders anticipating a near-term price rally. The stock’s recent gains and intraday highs reinforce this optimism, supported by a recovering airline sector.

However, the downgrade in mojo rating to Sell and the stock’s position below key longer-term moving averages counsel caution. Investors should consider the fundamental challenges facing the airline industry, including cost pressures and competitive dynamics, before committing capital.

Liquidity remains sufficient for sizeable trades, and the stock’s large-cap status ensures it remains a key player in the sector. For those inclined to capitalise on short-term momentum, monitoring open interest and price action around the 4900 strike will be critical as expiry approaches.

Ultimately, a balanced approach that integrates technical signals from the options market with fundamental analysis will serve investors best in navigating Interglobe Aviation’s evolving outlook.

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