Put Option Activity Highlights
Data from the derivatives market reveals that ITC Ltd. has emerged as the most active stock in put options trading, with significant volumes concentrated around the 300 to 310 strike price range for the 24 February 2026 expiry. The highest number of contracts traded was at the 300 strike price, where 3,898 contracts exchanged hands, generating a turnover of ₹397.28 lakhs and an open interest of 4,785 contracts. This level is particularly noteworthy as it sits just below the current underlying value of ₹305.40, indicating a strong interest in downside protection or speculative bearish bets.
Close behind, the 305 strike price saw 2,390 contracts traded with a turnover of ₹312.80 lakhs and an open interest of 1,174 contracts. The 310 strike price also attracted considerable activity, with 1,904 contracts traded and a turnover of ₹326.27 lakhs, alongside an open interest of 2,595 contracts. This clustering of put option activity around these strikes suggests that market participants are positioning for a potential decline or increased volatility in ITC’s share price over the coming weeks.
Price and Technical Context
ITC Ltd. has recently hit a new 52-week low of ₹302.85, marking a significant technical milestone that has likely contributed to the surge in bearish option positioning. The stock has underperformed its sector by 0.51% today and has declined by 5.01% over the past two trading sessions, reflecting sustained selling pressure. Intraday lows touched ₹302.85, down 2.13% from the previous close, underscoring the negative momentum.
Technically, ITC is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — which typically signals a bearish trend. This technical backdrop, combined with rising investor participation evidenced by a 77.28% increase in delivery volume to 2.93 crore shares on 30 January compared to the five-day average, points to heightened market interest and possible accumulation of short positions or hedging strategies.
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Bearish Positioning and Hedging Implications
The concentration of put option contracts at strike prices slightly below and near the current market price suggests that investors are either hedging existing long positions or speculating on further downside. The open interest figures, particularly the 4,785 contracts at the 300 strike, indicate a substantial build-up of bearish bets that could exert additional pressure on the stock if the price continues to slide.
Given ITC’s large market capitalisation of ₹3,87,905 crore and its status as a blue-chip FMCG stock, such pronounced put option activity is a signal worth noting. The Mojo Score for ITC currently stands at 48.0 with a Sell grade, downgraded from Hold on 29 December 2025, reflecting deteriorating fundamentals or market sentiment. The Market Cap Grade is 1, indicating the stock’s significant size but also its current risk profile.
Expiry Patterns and Market Outlook
The 24 February 2026 expiry date is attracting the bulk of put option interest, which is typical as traders position themselves ahead of key events or earnings announcements. The clustering of strike prices around 300 to 310 suggests a critical support zone that market participants are watching closely. Should ITC breach these levels decisively, it could trigger further downside momentum, amplified by option-related hedging flows.
Conversely, if the stock stabilises or rebounds above these strikes, some of the bearish option positions may be unwound, potentially leading to short covering and a relief rally. However, the current technical and volume indicators lean towards a cautious outlook in the near term.
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Investor Considerations
For investors holding ITC shares, the current environment calls for a reassessment of risk exposure. The stock’s recent underperformance relative to its sector and the Sensex, combined with the technical breakdown and heavy put option activity, suggests that downside risks remain elevated. The delivery volume spike indicates that institutional investors may be actively adjusting their positions, which could foreshadow further volatility.
Those considering fresh investments should weigh the stock’s fundamentals against the prevailing market sentiment and technical signals. While ITC remains a large-cap stalwart in the FMCG space, the Mojo Sell grade and deteriorating trend metrics highlight the need for caution. Monitoring option market activity can provide valuable insights into evolving investor expectations and potential price movements.
Conclusion
In summary, ITC Ltd.’s surge in put option trading ahead of the 24 February 2026 expiry underscores a growing bearish stance among market participants. The clustering of activity around the 300 to 310 strike prices, combined with the stock’s technical weakness and recent 52-week low, points to heightened downside risk and hedging behaviour. Investors should remain vigilant and consider these signals when managing their portfolios in the FMCG sector.
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