Rs 235 and Rs 250 Puts Draw Over 6,500 Contracts on Jio Financial Services Ltd Ahead of July Expiry

Put Options Event and Cash Market Context

On 17 July 2026, Jio Financial Services Ltd recorded heavy put option volumes at multiple strikes ahead of the 28 July expiry. The Rs 250 strike saw 3,503 contracts traded with an open interest of 1,922, while the Rs 235 strike had 3,083 contracts traded and an open interest of 1,764. Additionally, the Rs 240 and Rs 245 strikes also attracted notable activity, with 5,080 and 5,508 contracts traded respectively, though the Rs 235 and Rs 250 strikes stand out for their volume concentration.

The underlying stock price closed at Rs 244.60, having outperformed its sector by 4.66% and the Sensex by 3.85% on the day. The stock opened with a gap up of 5.03% and touched an intraday high of Rs 249.95, a 6.07% gain. This strong upward momentum contrasts with the surge in put contracts, which traditionally might be interpreted as bearish. However, the context suggests a more nuanced picture — is this put activity a protective hedge or a directional bet?

Strike Price Analysis: Moneyness and Intent

The Rs 250 put strike sits approximately 2.2% above the current market price, making it an in-the-money (ITM) put option. The Rs 235 strike is about 3.9% out-of-the-money (OTM), while the Rs 240 and Rs 245 strikes are near at-the-money (ATM) or slightly OTM. The presence of significant volume at both ITM and OTM strikes suggests a mix of strategies at play.

ITM puts like the Rs 250 strike often indicate bearish positioning or protective hedging for existing long positions, as they provide a higher intrinsic value cushion. Meanwhile, OTM puts such as Rs 235 are typically cheaper and may be bought either as speculative bearish bets or as part of spread strategies. The Rs 240 and Rs 245 strikes, being close to the current price, could represent fresh bearish bets or hedges against short-term volatility.

Given the stock’s recent rally, the Rs 235 OTM puts are less likely to be outright bearish bets expecting a sharp decline below Rs 235 within the next eleven days. Instead, they may be part of a hedging strategy or put writing, where sellers collect premium expecting the stock to remain above that level. What does the combination of ITM and OTM put activity reveal about market expectations?

Interpreting the Put Activity: Hedging, Bearish Positioning, or Put Writing?

Put option activity can be ambiguous. The Rs 250 strike’s ITM status and high turnover suggest some investors may be hedging existing long positions against a potential pullback, especially as the stock trades below its 200-day moving average despite gains above shorter-term averages. Protective puts at this strike would limit downside risk while allowing participation in the rally.

Conversely, the Rs 235 OTM puts, with a strike nearly 4% below the current price, could be sold by bullish investors confident the stock will not fall that far before expiry, thus collecting premium. Alternatively, some traders might be speculating on a sharp correction, but this is less likely given the stock’s recent strength and the proximity of expiry.

The Rs 240 and Rs 245 strikes, close to the current price, may reflect a blend of fresh bearish bets and hedging. The open interest figures, which are lower than the day’s traded contracts, indicate a significant amount of fresh positioning rather than just rollovers or adjustments.

Open Interest and Contracts Analysis

The ratio of contracts traded to open interest is notable. For the Rs 250 strike, 3,503 contracts traded against an OI of 1,922, a ratio of approximately 1.8:1, signalling fresh activity. The Rs 235 strike shows a similar pattern with 3,083 contracts traded versus 1,764 OI. The Rs 240 and Rs 245 strikes have even higher turnover relative to OI, indicating active repositioning or new trades.

This fresh activity suggests that the put market is not merely adjusting existing positions but is actively reshaping exposure. The mix of ITM and OTM strikes with high turnover and open interest points to a combination of hedging and put writing rather than purely bearish speculation.

Cash Market Momentum and Technical Context

Jio Financial Services Ltd is trading above its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short- to medium-term strength. However, it remains below the 200-day moving average, a longer-term resistance level. This technical setup often encourages hedging with puts near support zones, which aligns with the Rs 235 and Rs 240 strikes being close to potential support levels.

Delivery volumes have declined by 27.19% compared to the 5-day average, despite the rally. This thinning participation may prompt investors to protect gains with put options, as the rally lacks strong delivery-backed conviction — should investors consider hedging in such a scenario?

Delivery Volume and Quality of Participation

The delivery volume on 16 July was 51.83 lakh shares, down 27.19% from the recent average. This suggests that while the stock price is rising, fewer investors are committing to holding shares, which can indicate cautious optimism or profit booking. The put activity at ITM and OTM strikes may be a direct response to this dynamic, as investors seek to guard against a potential pullback in the absence of strong delivery support.

Conclusion: Protective Hedging Dominates Put Activity

The combined data from the put strikes, open interest, and cash market price action suggests that the heavy put option activity on Jio Financial Services Ltd is primarily driven by protective hedging rather than outright bearish bets. The ITM Rs 250 puts provide downside protection for longs, while the OTM Rs 235 puts likely reflect put writing or speculative hedging given the stock’s recent rally and technical positioning.

While some fresh bearish positioning cannot be ruled out at the ATM strikes, the overall picture is one of cautious optimism with risk management. The stock’s rise above multiple short-term moving averages but below the 200-day average supports this interpretation, as investors balance upside potential with downside risk.

With puts active at multiple strikes and the stock showing mixed technical signals, should investors be hedging their positions or expecting a continuation of the rally?

Get 33% Off on our 1 Year Plan - Limited Period Only! Start Today