Put Option Activity Highlights
On 11 February 2026, ITC Ltd. emerged as the most active stock in put options, with 3,067 contracts traded at the ₹318.5 strike price expiring on 24 February 2026. This activity generated a turnover of ₹178.13 lakhs, reflecting significant investor interest in downside protection or speculative bearish bets. The open interest at this strike stands at 2,243 contracts, indicating sustained interest and potential accumulation of bearish positions.
The underlying stock price closed at ₹319.75, marginally above the put strike price, which suggests that traders are positioning for a possible decline or increased volatility in the near term. The concentration of put options at this strike price, close to the current market price, is a classic indicator of hedging strategies or outright bearish bets.
Price and Technical Context
ITC Ltd. has been under pressure recently, with the stock recording a consecutive three-day decline, losing 1.84% over this period. The daily return on 11 February was -0.56%, slightly outperforming the sector’s fall of -0.66% but lagging the Sensex’s near-flat performance (-0.01%). The stock has traded within a narrow range of ₹2.65, reflecting subdued volatility despite the bearish undertone.
Technically, ITC’s price is currently 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 points to short-term support but longer-term resistance, reinforcing the cautious stance among investors. The delivery volume on 10 February was 62.47 lakh shares, a sharp decline of 61.56% compared to the five-day average, signalling reduced investor participation and possibly a wait-and-watch approach ahead of the options expiry.
Dividend Yield and Liquidity Considerations
Despite the bearish sentiment, ITC Ltd. continues to offer an attractive dividend yield of 4.04% at the current price level, which may provide some cushion for long-term investors. The stock’s liquidity remains robust, with a trade size capacity of approximately ₹18.03 crore based on 2% of the five-day average traded value, ensuring that option and stock trades can be executed without significant market impact.
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Mojo Score and Analyst Ratings
ITC Ltd. currently holds a Mojo Score of 48.0, categorised as a Sell rating, a downgrade from its previous Hold status as of 9 February 2026. This downgrade reflects deteriorating fundamentals or market sentiment, aligning with the increased put option activity. The company’s market capitalisation stands at a substantial ₹4,02,627 crore, placing it firmly in the large-cap segment of the FMCG sector.
Sector and Market Comparison
Within the FMCG sector, ITC’s performance has been inline with peers, but the recent negative momentum and technical signals have raised caution. The sector itself has seen a modest decline, with the 1-day return at -0.66%, slightly worse than ITC’s -0.56%. The broader Sensex has remained largely flat, indicating that ITC’s weakness is more sector-specific or stock-specific rather than a market-wide phenomenon.
Expiry Patterns and Investor Behaviour
The expiry date of 24 February 2026 is attracting significant put option interest, suggesting that investors are either hedging existing long positions or speculating on a near-term correction. The strike price of ₹318.5 is particularly noteworthy as it is very close to the current market price, indicating that traders expect potential downside or are seeking insurance against a drop below this level.
Open interest data corroborates this view, with 2,243 contracts outstanding, signalling that the bearish positioning is not transient but may persist until expiry. This pattern is consistent with a cautious market outlook, where investors are balancing dividend yield attraction against near-term risks.
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Implications for Investors
The heightened put option activity in ITC Ltd. serves as a barometer of investor sentiment, signalling caution amid a mixed technical backdrop and recent price weakness. While the stock’s attractive dividend yield and large-cap status provide some defensive qualities, the downgrade to a Sell rating and the concentration of bearish options suggest that investors should remain vigilant.
For long-term holders, the current environment may warrant a review of portfolio exposure, especially given the falling investor participation and technical resistance at multiple moving averages. Traders and hedgers are likely utilising put options to mitigate downside risk, which could lead to increased volatility as the 24 February expiry approaches.
Outlook and Strategy
Given the data, a cautious approach is advisable. Investors might consider monitoring open interest trends and price action closely in the coming weeks. The narrow trading range and declining delivery volumes indicate a market waiting for a catalyst, which could be earnings updates, sector developments, or broader macroeconomic factors.
Those seeking to hedge existing positions or speculate on downside may find the ₹318.5 strike put options attractive, while long-term investors should weigh the dividend yield against the risk of further price erosion. The current Sell rating from MarketsMOJO underscores the need for prudence.
Overall, ITC Ltd.’s option market activity provides valuable insight into market expectations and risk management strategies, highlighting the importance of options data in comprehensive equity analysis.
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