Maruti Suzuki Sees Heavy Put Option Activity Ahead of February Expiry

Put Option Activity Highlights

On 29 January 2026, Maruti Suzuki’s put options with a strike price of ₹14,000 and expiry on 24 February 2026 recorded a remarkable 2,228 contracts traded, generating a turnover of approximately ₹169.75 lakhs. Open interest at this strike stands at 2,421 contracts, indicating sustained investor interest in downside protection or speculative bearish bets. The underlying stock price was ₹14,499 at the time, suggesting that the ₹14,000 strike is positioned slightly out-of-the-money, a common level for hedging against moderate declines.

Such heavy put option activity often reflects a cautious market stance, with participants either hedging existing long positions or speculating on a potential correction. The volume and open interest data imply that traders are actively managing risk amid a backdrop of mixed technical signals and sector dynamics.

Technical and Market Context

Maruti Suzuki’s stock price has demonstrated resilience, outperforming its sector by 0.55% on the day of analysis. However, the stock is trading below its 5-day, 20-day, 50-day, and 100-day moving averages, while remaining above the 200-day moving average. This technical setup suggests short-term weakness within a longer-term uptrend, which may be prompting investors to seek downside protection through put options.

Investor participation has been rising, with delivery volumes reaching 3.73 lakh shares on 29 January, a 15.59% increase over the five-day average. This heightened activity, combined with the stock’s liquidity—capable of supporting trades worth ₹22.32 crores based on 2% of the five-day average traded value—makes Maruti Suzuki a prime candidate for active options trading.

Fundamental and Rating Overview

Maruti Suzuki India Ltd, a large-cap automobile company with a market capitalisation of ₹4,56,009.49 crores, currently holds a Mojo Score of 62.0 and a Mojo Grade of Hold. This represents a downgrade from a previous Buy rating issued on 12 January 2026, reflecting a more cautious outlook by analysts. The downgrade may be influencing the increased put option activity as investors reassess risk and reward in the stock.

Expiry Patterns and Investor Behaviour

The 24 February 2026 expiry date is attracting significant attention, with the ₹14,000 put strike price dominating activity. This expiry is less than a month away, indicating that traders are positioning for near-term volatility or downside risk. The concentration of open interest at this strike suggests that investors are either hedging against a potential pullback or speculating on a decline below this level.

Given the stock’s current price near ₹14,499, the ₹14,000 strike represents a roughly 3.5% downside threshold. This level may be viewed as a critical support zone by market participants. The elevated put volume and open interest could also be signalling expectations of increased volatility or a correction in the automobile sector, which has faced headwinds from supply chain disruptions and fluctuating demand.

Bearish Positioning and Hedging Strategies

The surge in put option activity is a classic indicator of bearish sentiment or risk management. Institutional investors and traders often use puts to hedge long equity positions, protecting portfolios against adverse price movements. Alternatively, speculative traders may buy puts outright to profit from anticipated declines.

Maruti Suzuki’s downgrade from Buy to Hold by MarketsMOJO analysts on 12 January 2026 likely contributed to the cautious stance. The downgrade reflects concerns over near-term earnings growth and valuation pressures, which may have prompted investors to increase downside protection via puts.

Despite the bearish undertones, the stock’s large-cap status and strong market liquidity provide a degree of stability. The Mojo Grade Hold suggests that while risks have increased, the company’s fundamentals remain sound enough to avoid a more severe rating downgrade at this stage.

Implications for Investors

For investors holding Maruti Suzuki shares, the heightened put option activity signals a need for vigilance. The stock’s technical indicators suggest short-term weakness, while the downgrade and increased hedging point to cautious sentiment. Investors may consider reviewing their exposure and employing risk management strategies such as protective puts or stop-loss orders.

Conversely, traders looking to capitalise on volatility might find opportunities in the options market, given the liquidity and active participation. The ₹14,000 strike price near-term expiry offers a focal point for positioning, whether for hedging or speculative purposes.

Sector and Market Context

The automobile sector has been navigating challenges including semiconductor shortages, fluctuating raw material costs, and shifting consumer demand patterns. Maruti Suzuki, as a market leader, is not immune to these pressures. The stock’s outperformance relative to the sector on the day analysed (+0.55%) contrasts with the broader sector’s decline (-0.47%) and Sensex’s fall (-0.48%), highlighting its relative resilience.

However, the mixed technical signals and increased put activity suggest that investors remain cautious about the sustainability of this outperformance. The sector’s outlook will likely continue to influence Maruti Suzuki’s price action and options market dynamics in the near term.

Conclusion

Maruti Suzuki India Ltd’s prominence as the most active stock in put options trading ahead of the 24 February 2026 expiry underscores a growing bearish or hedging sentiment among investors. The concentration of activity at the ₹14,000 strike price, combined with a recent downgrade and mixed technical indicators, suggests that market participants are preparing for potential downside risks.

While the stock remains fundamentally strong and liquid, investors should carefully monitor developments and consider appropriate risk management measures. The options market activity provides valuable insight into market expectations and can serve as an early warning signal for shifts in sentiment.

Overall, Maruti Suzuki’s current positioning reflects a nuanced balance between resilience and caution, making it a key stock to watch in the automobile sector as the February expiry approaches.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →