Surge in Mahindra & Mahindra Ltd Put Options: 2,817 Contracts Traded at Rs 3200 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 the put options segment. The company’s underlying stock, M&M, is currently valued at Rs 3210.1, just 2.14% shy of its 52-week high of Rs 3270.95.
Today, 2,817 put contracts were traded with a turnover of Rs 11.06 lakh, indicating significant activity in this option type, which has a strike price of Rs 3200 and an expiry date set for June 26, 2025. The open interest stands at 2,614 contracts, reflecting ongoing interest among traders.

Despite this activity, M&M's stock has underperformed its sector by 0.39% today, with a one-day return of -0.58%. The stock has experienced a trend reversal, falling after two consecutive days of gains. However, it remains above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a generally positive long-term trend.

Investor participation has seen a decline, with delivery volume dropping by 37.78% compared to the 5-day average. Nevertheless, the stock maintains adequate liquidity, with a trade size of Rs 22.62 crore based on 2% of the 5-day average traded value.

In summary, while Mahindra & Mahindra Ltd shows notable activity in the options market, the stock's recent performance reflects mixed signals amid changing investor dynamics.