Surge in Mahindra & Mahindra Ltd's Put Options: 16,849 Contracts Traded at Rs 3,400 Strike

Mahindra & Mahindra Ltd, a prominent player in the automobiles sector, has emerged as one of the most active stocks in the options market today, particularly in put options. The company’s underlying stock, M&M, is currently valued at Rs 3,379. Notably, a significant number of put contracts—16,849—were traded, reflecting a turnover of approximately Rs 1,614.81 lakhs. The put options have a strike price of Rs 3,400 and are set to expire on August 28, 2025, with an open interest of 2,340 contracts.
Despite the notable activity in the options market, M&M's stock has underperformed its sector by 0.56% today, with a one-day return of -0.91%. The stock is currently trading close to its 52-week high, just 2.61% away from Rs 3,432. It is also trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally positive trend in the longer term.

Investor participation has seen a rise, with delivery volume reaching 37.94 lakhs on August 18, marking a 159.22% increase compared to the 5-day average. The liquidity of M&M remains robust, with a trade size of Rs 20.59 crore based on 2% of the 5-day average traded value. Overall, the activity in M&M's put options highlights a significant engagement in the stock, reflecting the dynamics of the current market environment.