ITC Ltd Sees Surge in Call Option Activity Ahead of February Expiry

Robust Call Option Activity Highlights Investor Optimism

The call option with a strike price of ₹330 expiring on 24 February 2026 emerged as the most actively traded contract for ITC Ltd. on the derivatives front. A total of 8,950 contracts changed hands, generating a turnover of ₹445.35 lakhs. Open interest for this strike stands at 10,753 contracts, underscoring sustained investor interest and potential accumulation ahead of expiry.

This heightened activity at the ₹330 strike, which is slightly above the current underlying price of ₹323.30, suggests that traders are anticipating a moderate price appreciation in ITC shares over the coming weeks. The premium paid for these calls reflects a willingness to pay for upside exposure, signalling confidence in the stock’s near-term prospects.

Stock Performance and Technical Context

ITC’s stock price movement today was largely in line with its FMCG sector peers, registering a marginal decline of 0.80%, compared to the sector’s 0.87% drop. The benchmark Sensex, however, managed a modest gain of 0.59%, indicating a mixed market environment.

From a technical standpoint, ITC’s share price 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 suggests a short-term recovery attempt amid a longer-term consolidation phase. The rising delivery volume of 3.56 crore shares on 6 February, which surged by 115.41% relative to the 5-day average, points to increased investor participation and interest in the stock.

Dividend Yield and Liquidity Support Trading Activity

ITC Ltd. continues to offer an attractive dividend yield of 3.98% at the current price level, which remains a key draw for income-focused investors. The stock’s liquidity is also robust, with the average traded value over five days supporting trade sizes up to ₹22.78 crore comfortably. This liquidity facilitates active options trading and allows institutional and retail investors to execute sizeable positions without significant market impact.

Mojo Score Upgrade Reflects Improving Fundamentals

MarketsMOJO recently upgraded ITC Ltd.’s Mojo Grade from Sell to Hold on 4 February 2026, reflecting a modest improvement in the company’s fundamental and technical outlook. The current Mojo Score stands at 51.0, indicating a neutral stance with potential for upside if positive catalysts materialise. Despite the upgrade, the Market Cap Grade remains at 1, signalling that while ITC is a large-cap heavyweight with a market capitalisation of ₹4,05,007 crore, valuation and growth metrics warrant cautious monitoring.

Expiry Patterns and Investor Positioning

The expiry on 24 February 2026 is attracting significant open interest in call options at the ₹330 strike, which is approximately 2% above the current market price. This suggests that investors are positioning for a moderate rally, possibly driven by expectations of steady earnings, favourable sector dynamics, or positive policy developments impacting FMCG companies.

Open interest data indicates that the ₹330 call option is the focal point for bullish bets, with the sizeable number of contracts implying that traders are either buying calls outright or writing calls as part of complex strategies such as spreads or collars. The turnover of ₹445.35 lakhs in these contracts further confirms active participation and liquidity in this strike price segment.

Sectoral and Market Context

Within the FMCG sector, ITC’s performance today was broadly in line with peers, which collectively faced mild selling pressure. The sector’s 0.87% decline contrasts with the broader market’s modest gains, reflecting sector-specific challenges such as input cost inflation and changing consumer preferences. However, ITC’s diversified business model, including its strong presence in cigarettes, packaged foods, and personal care, provides a cushion against sector headwinds.

Investors should note that while the short-term technical indicators show mixed signals, the rising delivery volumes and active options market suggest that market participants are positioning for a potential rebound or at least a stabilisation in ITC’s share price.

Investor Takeaway and Outlook

For investors analysing ITC Ltd., the surge in call option activity at the ₹330 strike price ahead of the 24 February expiry is a clear indication of bullish sentiment, albeit with measured expectations. The stock’s current technical setup, combined with improving delivery volumes and a recent Mojo Grade upgrade, supports a cautiously optimistic outlook.

However, the stock’s performance remains sensitive to broader FMCG sector trends and macroeconomic factors such as inflation and consumer demand. The high dividend yield of 3.98% continues to make ITC attractive for income investors, while the liquidity profile ensures ease of trading for institutional players.

Market participants should monitor open interest changes and price movements closely in the coming weeks to gauge whether the bullish positioning in options translates into sustained upward momentum in the underlying shares.

Summary of Key Metrics:

• Underlying Price: ₹323.30
• Most Active Call Strike: ₹330 (Expiry 24 Feb 2026)
• Number of Contracts Traded: 8,950
• Turnover in Call Options: ₹445.35 lakhs
• Open Interest at ₹330 Strike: 10,753 contracts
• Mojo Score: 51.0 (Hold, upgraded from Sell on 4 Feb 2026)
• Dividend Yield: 3.98%
• Market Cap: ₹4,05,007 crore (Large Cap)
• Delivery Volume (6 Feb): 3.56 crore shares (+115.41% vs 5-day avg)

In conclusion, ITC Ltd.’s options market activity reveals a nuanced but positive investor stance, with the ₹330 call options attracting significant interest as traders position for a potential price recovery. While the stock faces sectoral headwinds, its strong fundamentals, dividend yield, and improving technical indicators provide a solid foundation for investors to consider in their portfolio strategies.

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