Mazagon Dock Shipbuilders Sees Robust Call Option Activity Ahead of January Expiry

Robust Call Option Activity Highlights Bullish Sentiment

Data from the derivatives market reveals that Mazagon Dock Shipbuilders Ltd has emerged as one of the most actively traded stocks in call options, with significant volumes concentrated around strike prices close to the current underlying value of ₹2,535. The three most active call strikes expiring on 27 January 2026 are ₹2,500, ₹2,540, and ₹2,600.

The ₹2,500 strike saw the highest number of contracts traded at 4,235, generating a turnover of ₹865.04 lakhs and an open interest of 1,909 contracts. Close behind, the ₹2,600 strike recorded 3,732 contracts traded with a turnover of ₹432.84 lakhs and a notably higher open interest of 3,765 contracts, indicating strong open positions held by traders anticipating a rise beyond this level. The ₹2,540 strike also attracted substantial activity with 3,660 contracts traded and a turnover of ₹607.71 lakhs, though open interest remains relatively modest at 859 contracts.

This concentrated activity near and slightly above the current market price suggests that market participants are positioning for a potential upward move in the near term, betting on the stock to breach the ₹2,600 level by expiry.

Stock Performance and Technical Context

On 9 January 2026, Mazagon Dock Shipbuilders Ltd’s stock price touched an intraday high of ₹2,557.6, marking a 3.11% gain for the day and outperforming its aerospace and defence sector by 1.1%. The stock’s 1-day return stood at 1.58%, comfortably above the sector’s 1.28% and the Sensex’s negative 0.19% return, underscoring relative strength amid broader market weakness.

Technically, the stock is trading above its 5-day and 20-day moving averages, signalling short-term momentum. However, it remains below its longer-term 50-day, 100-day, and 200-day moving averages, indicating that the medium to long-term trend is yet to confirm a sustained uptrend. This mixed technical picture may explain the cautious yet optimistic positioning seen in the options market.

Investor participation, as measured by delivery volume, has declined by 17.75% compared to the 5-day average, with 2.15 lakh shares delivered on 8 January 2026. This drop in delivery volume suggests some hesitation among long-term holders, even as speculative interest in call options rises.

Mojo Score Downgrade Reflects Caution Despite Market Optimism

Despite the bullish options activity and recent price gains, Mazagon Dock Shipbuilders Ltd’s mojo score was downgraded from Hold to Sell on 2 December 2025, with the current mojo score standing at 44.0. The downgrade reflects concerns over the company’s market cap grade, which remains at a low 1, and other fundamental metrics that have not improved sufficiently to warrant a more positive outlook.

The company’s market capitalisation is substantial at ₹1,00,030 crores, categorising it as a large-cap stock within the aerospace and defence sector. However, the mojo grading system’s cautionary stance suggests that investors should weigh the speculative call option interest against underlying fundamental challenges.

Expiry Patterns and Open Interest Analysis

The expiry date of 27 January 2026 is attracting significant open interest, particularly at the ₹2,600 strike, which holds 3,765 contracts. This elevated open interest at a strike price above the current market value indicates that traders are not only buying calls but also holding onto existing positions, expecting the stock to rally beyond this level before expiry.

Open interest at the ₹2,500 strike is also substantial at 1,909 contracts, reinforcing the view that the ₹2,500 to ₹2,600 range is a critical zone for market participants. The relatively lower open interest at the ₹2,540 strike (859 contracts) may reflect more recent or speculative trades rather than established positions.

Turnover figures corroborate this narrative, with the ₹2,500 strike generating the highest turnover of ₹865.04 lakhs, followed by ₹2,540 and ₹2,600 strikes. This liquidity ensures that traders can enter and exit positions with relative ease, supporting active speculative and hedging strategies.

Sector and Market Context

The aerospace and defence sector has shown moderate gains recently, with the sector index rising 1.28% on the day, supported by government defence spending and strategic initiatives. Mazagon Dock Shipbuilders Ltd’s outperformance relative to the sector and the broader Sensex’s decline highlights its defensive qualities and potential as a tactical trade.

However, the stock’s mixed technical signals and falling delivery volumes suggest that long-term investors remain cautious. The divergence between speculative call option interest and fundamental mojo ratings underscores the importance of a balanced approach when considering exposure to this stock.

Investor Takeaway: Balancing Speculation with Fundamentals

For investors and traders, the current landscape for Mazagon Dock Shipbuilders Ltd presents a nuanced picture. The surge in call option volumes and open interest near key strike prices signals a strong speculative interest in an upward price move by late January. This is supported by the stock’s recent outperformance and short-term technical momentum.

Conversely, the downgrade in mojo rating to Sell and the subdued delivery volumes caution against overreliance on speculative positioning. The stock’s inability to surpass longer-term moving averages suggests that a sustained rally requires confirmation through improved fundamentals or broader sectoral tailwinds.

Market participants should monitor the evolving open interest and price action closely as the 27 January expiry approaches, while also considering alternative investment opportunities within the aerospace and defence sector and beyond.

Summary of Key Metrics:

• Underlying stock price: ₹2,535.0


• Most active call strikes: ₹2,500, ₹2,540, ₹2,600


• Highest contracts traded: 4,235 (₹2,500 strike)


• Highest open interest: 3,765 (₹2,600 strike)


• Turnover at ₹2,500 strike: ₹865.04 lakhs


• Mojo Score: 44.0 (Sell, downgraded from Hold on 2 Dec 2025)


• Market cap: ₹1,00,030 crores (Large Cap)


• Stock 1-day return: 1.58% vs Sector 1.28% and Sensex -0.19%


• Delivery volume decline: -17.75% vs 5-day average

In conclusion, Mazagon Dock Shipbuilders Ltd’s active call option market reflects a tactical bullish stance among traders, while fundamental caution remains prevalent. Investors should weigh these factors carefully when considering exposure to this aerospace and defence stalwart.

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