Put Option Surge Reflects Market Caution
On 10 February 2026, Maruti Suzuki witnessed a remarkable spike in put option volumes, with 6,714 contracts traded at the ₹15,000 strike price expiring on 24 February 2026. This activity generated a turnover of ₹473.17 lakhs and an open interest of 3,351 contracts, underscoring significant investor interest in downside protection or speculative bearish bets.
The underlying stock price stood at ₹15,289, marginally above the strike price, indicating that traders are positioning for a potential near-term correction or volatility. The put option activity is notably the highest among automobile sector stocks, reflecting a strategic hedging approach amid mixed technical signals.
Stock Performance and Technical Context
Maruti Suzuki’s stock performance on the day was broadly in line with its sector peers, registering a 1D return of 2.03%, slightly outperforming the automobile sector’s 1.86% and the Sensex’s 0.37%. The stock touched an intraday high of ₹15,349, a 2.48% gain, marking a reversal after three consecutive days of decline.
Technically, the stock trades above its 5-day and 200-day moving averages but remains below the 20-day, 50-day, and 100-day averages. This mixed moving average alignment suggests a transitional phase, where short-term momentum is positive but medium-term trends remain under pressure.
Investor participation has waned, with delivery volumes falling by 54.97% to 1.34 lakh shares on 9 February compared to the five-day average, signalling reduced conviction among buyers. Despite this, liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹12 crore comfortably.
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Investor Sentiment and Hedging Implications
The heavy put option activity at the ₹15,000 strike price, just below the current market price, suggests that investors are either hedging existing long positions or speculating on a near-term decline. This strike price is psychologically significant, as it represents a key support level for the stock.
Given the open interest of 3,351 contracts, the market is anticipating potential volatility or a pullback in the coming weeks. The expiry date of 24 February 2026 is critical, as option expiry often triggers price movements due to unwinding or rolling of positions.
Maruti Suzuki’s Mojo Score currently stands at 62.0, with a Mojo Grade of Hold, downgraded from Buy on 12 January 2026. This downgrade reflects a cautious stance by analysts, factoring in the recent price action and sector dynamics. The company’s market capitalisation is ₹4,75,605 crore, categorising it as a large-cap stock with a Market Cap Grade of 1, indicating strong market presence but limited upside in the near term.
Sector and Market Comparison
Within the automobile sector, Maruti Suzuki’s put option activity is the most pronounced, highlighting its role as a bellwether stock. The sector has shown moderate gains, but the mixed technical indicators and falling delivery volumes suggest investors are selectively cautious.
Comparatively, the Sensex’s modest 0.37% gain on the day indicates broader market stability, but the divergence in option activity points to stock-specific concerns. Investors may be wary of macroeconomic factors such as input cost inflation, regulatory changes, or demand fluctuations impacting automobile sales.
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Outlook and Investor Takeaways
For investors, the surge in put option volumes at a strike price close to the current market level is a clear signal to monitor risk closely. While the stock has shown resilience with a recent bounce, the technical setup and reduced delivery volumes counsel prudence.
Hedging strategies using puts can protect portfolios against downside risk, especially in a large-cap stock like Maruti Suzuki that is sensitive to sectoral and macroeconomic shifts. Traders may also view the put option activity as an opportunity to enter bearish positions if the stock fails to sustain above key moving averages.
Long-term investors should weigh the recent downgrade from Buy to Hold and consider the company’s fundamentals alongside market sentiment. The automobile sector’s cyclical nature and evolving regulatory environment necessitate a balanced approach to exposure.
Overall, the options market is signalling a cautious stance on Maruti Suzuki, with significant put buying reflecting hedging and speculative bearish interest ahead of the February expiry.
Conclusion
Maruti Suzuki India Ltd’s prominent put option activity at the ₹15,000 strike price ahead of the 24 February 2026 expiry highlights a nuanced market outlook. While the stock has rebounded from recent lows, the elevated put volumes and open interest suggest investors are bracing for potential volatility or a correction. The downgrade to a Hold rating and mixed technical indicators reinforce the need for careful risk management. Investors should closely monitor price action and option market dynamics to navigate this critical period effectively.
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