Interglobe Aviation Sees Heavy Call Option Activity Ahead of December Expiry

Call Option Activity Highlights

Among the most actively traded call options for Interglobe Aviation are those with strike prices of ₹5,000 and ₹5,100, both expiring on 30 December 2025. The ₹5,000 strike call options saw 16,917 contracts traded, generating a turnover of approximately ₹2,790.29 lakhs. Open interest for this strike stands at 8,166 contracts, indicating a strong level of outstanding positions. Meanwhile, the ₹5,100 strike call options recorded 11,351 contracts traded with a turnover of ₹1,103.49 lakhs and an open interest of 6,585 contracts.

The underlying stock price of Interglobe Aviation was ₹5,062.50 at the time of this activity, placing these strike prices close to the current market level. This proximity suggests that traders are positioning for potential upward movement or hedging strategies as the expiry date approaches.

Stock Price and Market Context

On 18 December 2025, Interglobe Aviation’s stock price demonstrated resilience, touching an intraday high of ₹5,081, which represents a 2.02% increase on the day. The stock has been on a six-day consecutive gain streak, accumulating a return of 5.57% over this period. This performance aligns closely with the broader airline sector, which gained 2.44% on the same day, and outpaces the Sensex’s modest 0.13% rise.

Despite this short-term momentum, the stock’s weighted average traded price indicates that most volume was concentrated near the lower end of the day’s price range. Additionally, the stock’s current price is above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This mixed technical picture suggests some caution among investors, with the longer-term trend still under pressure.

Investor participation has shown signs of moderation, with delivery volumes on 17 December falling to 9.3 lakh shares, a decline of 58.81% compared to the five-day average delivery volume. However, liquidity remains sufficient for sizeable trades, with the stock’s traded value supporting transactions up to ₹36.83 crore based on 2% of the five-day average traded value.

Implications of Option Market Positioning

The concentration of call option activity at strike prices slightly above the current market price suggests that traders are anticipating potential upside in Interglobe Aviation’s shares over the coming weeks. The open interest figures reinforce this view, as they represent positions that remain open and could influence price movements as expiry approaches.

Options traders often use call options to express bullish views or to hedge existing short positions. The sizeable turnover and open interest at the ₹5,000 and ₹5,100 strikes indicate that these levels are key reference points for market participants. Should the stock price move above these strikes, it could trigger further buying interest and potentially accelerate gains.

Sector and Market Comparison

Interglobe Aviation operates within the airline industry, a sector that has shown moderate gains recently. The sector’s 2.44% rise on the day of analysis reflects improving travel demand and operational recovery trends. However, the stock’s market capitalisation of ₹1,92,445 crore places it firmly in the large-cap category, where investor expectations are often tempered by broader economic and geopolitical factors affecting the aviation industry.

Compared to the Sensex’s 0.13% gain, Interglobe Aviation’s 2.29% one-day return and six-day cumulative gains highlight its relative outperformance. This may be partly driven by the options market positioning, which can sometimes foreshadow directional moves in the underlying shares.

Outlook and Considerations for Investors

While the options market activity points to a degree of bullish positioning, investors should weigh this against the broader technical and fundamental context. The stock’s position below several key moving averages suggests that longer-term resistance levels remain in place. Additionally, the decline in delivery volumes may indicate some hesitation among long-term holders.

Nevertheless, the liquidity and trading volumes support active participation, and the stock’s recent gains relative to the sector and benchmark indices highlight its potential to respond to positive catalysts. Market participants should monitor developments in the airline sector, fuel price trends, and macroeconomic factors that could influence Interglobe Aviation’s operational performance and share price trajectory.

Expiry Dynamics and Potential Price Movements

As the 30 December 2025 expiry date approaches, the interplay between open interest and strike prices will be crucial. If the stock price moves decisively above the ₹5,000 and ₹5,100 strikes, it could lead to a squeeze on short option sellers and further buying pressure. Conversely, if the price fails to breach these levels, option premiums may decay, and the stock could consolidate or retrace.

Traders and investors should also consider the impact of implied volatility and time decay on option prices, which can affect the attractiveness of call options as speculative or hedging instruments.

Overall, the current option market activity in Interglobe Aviation reflects a nuanced market view, blending optimism with caution as participants navigate the final weeks of the year.

Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Claim Your Free Year →