Put Option Activity Highlights
The most active put options for Larsen & Toubro (LT) are concentrated around the 30 December 2025 expiry, with two strike prices drawing substantial volumes. The 4,000 strike price saw 3,386 contracts traded, generating a turnover of approximately ₹113 lakhs and an open interest of 3,083 contracts. Meanwhile, the 4,100 strike price recorded 2,369 contracts traded, with turnover nearing ₹220 lakhs and open interest standing at 2,424 contracts. These figures indicate a strong interest in downside protection or bearish positioning at levels slightly below and near the current underlying value of ₹4,094.30.
Stock Performance and Market Context
Larsen & Toubro’s stock price has been on a positive trajectory, gaining 2.76% over the last two trading sessions and outperforming the construction sector by 0.88% on the day. The stock touched an intraday high of ₹4,114, which is just 0.94% shy of its 52-week peak of ₹4,140. It is trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained upward momentum.
However, investor participation appears to be moderating, with delivery volumes on 11 December falling by 26.03% compared to the five-day average. This decline in delivery volume could suggest a cautious stance among long-term holders despite the recent price gains. Liquidity remains robust, with the stock capable of handling trade sizes up to ₹10.25 crore based on 2% of the five-day average traded value.
Only 1% make it here. This Large Cap from the Gems, Jewellery And Watches sector passed our rigorous filters with flying colors. Be among the first few to spot this gem!
- - Highest rated stock selection
- - Multi-parameter screening cleared
- - Large Cap quality pick
Interpreting the Put Option Interest
The concentration of put option contracts at strike prices of ₹4,000 and ₹4,100, both close to the current market price, suggests that market participants are positioning for potential downside risk or seeking to hedge existing long positions. The open interest figures, which remain elevated, indicate that these positions are not merely speculative but may be part of broader risk management strategies.
Put options at these strike prices provide a form of insurance against price declines below these levels, which could be appealing given the stock’s proximity to its yearly high. The expiry date of 30 December 2025 also aligns with the end of the calendar year, a period when investors often reassess portfolios and adjust hedges accordingly.
Sector and Market Comparison
Within the construction sector, Larsen & Toubro’s performance stands out. The stock’s one-day return of 2.26% surpasses the sector’s 1.36% gain and the Sensex’s 0.51% increase on the same day. This relative strength may attract both bullish investors and cautious traders looking to protect gains through options.
With a market capitalisation of ₹5,50,645 crore, Larsen & Toubro is firmly positioned as a large-cap stock, drawing significant institutional and retail interest. The stock’s liquidity and trading volumes support active options market participation, enabling diverse strategies from speculative plays to sophisticated hedging.
Get the full story on Larsen & Toubro .! Our detailed research dives into fundamentals, sector comparison, technical analysis, and valuations for this Construction large-cap. Make informed decisions!
- - Full research story
- - Sector comparison done
- - Informed decision support
Outlook and Investor Considerations
While Larsen & Toubro’s recent price action reflects positive momentum, the active put option interest highlights a nuanced market view. Investors may be balancing optimism with caution, employing options to mitigate potential volatility or downside risks as the year closes.
Given the stock’s proximity to its 52-week high and the broader market environment, the elevated put activity could also signal profit-taking or preparation for short-term corrections. Market participants should monitor open interest trends and price movements closely, especially as the December expiry approaches.
Additionally, the stock’s trading above all major moving averages suggests underlying strength, but the decline in delivery volumes may warrant attention as an indicator of changing investor conviction.
Summary
Larsen & Toubro Ltd. remains a focal point in the construction sector with robust trading volumes and strong price performance. The surge in put option contracts at strike prices near the current market level underscores a strategic approach by investors to hedge or express caution despite recent gains. As the 30 December expiry nears, the interplay between bullish price trends and bearish option positioning will be a key dynamic to watch for market participants.
Key Data at a Glance:
- Underlying stock price: ₹4,094.30
- Put option strike prices: ₹4,000 and ₹4,100
- Put contracts traded: 3,386 (₹4,000 strike), 2,369 (₹4,100 strike)
- Turnover: ₹113 lakhs (₹4,000 strike), ₹220 lakhs (₹4,100 strike)
- Open interest: 3,083 (₹4,000 strike), 2,424 (₹4,100 strike)
- Stock close to 52-week high: 0.94% away
- Market cap: ₹5,50,645 crore
- Recent 2-day return: 2.76%
Investors and traders should consider these factors in the context of their portfolio strategies and risk tolerance as Larsen & Toubro navigates the final weeks of the year.
Only ₹14,999 - Get MojoOne + Stock of the Week for 2 Years PLUS 6 Months FREE Claim 83% OFF →
