Multi Commodity Exchange of India Sees Robust Call Option Activity Ahead of December Expiry

Strong Call Option Trading Signals Market Interest

Data from the derivatives segment reveals that call options with a strike price of ₹11,000 expiring on 30 December 2025 have attracted substantial trading volumes. A total of 26,219 contracts were traded, generating a turnover of approximately ₹2,094.24 lakhs. The open interest for these contracts stands at 3,868, indicating sustained positions held by market participants.

The underlying value of MCX at ₹10,778 on the day of analysis suggests that the strike price is positioned slightly above the current market price, which often signals expectations of upward price movement by option traders. This activity is consistent with a bullish outlook, as investors appear to be positioning for potential gains in the near term.

Price Performance and Market Context

MCX’s stock price reached a new 52-week and all-time high of ₹10,799 during intraday trading, marking a 4.77% increase on the day. This performance outpaced the capital markets sector, which recorded a 0.53% return, and the broader Sensex index, which rose by 0.64%. Over the past three consecutive trading sessions, MCX has delivered a cumulative return of 7.58%, reflecting sustained buying interest.

Notably, the weighted average price of traded shares was closer to the day’s low, suggesting that the bulk of volume was executed near the lower end of the price range. This pattern may indicate cautious accumulation by investors amid the recent rally.

Technical Indicators Support Uptrend

From a technical perspective, MCX is trading above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This alignment of moving averages typically signals a strong uptrend and can attract momentum-driven buying. The rising investor participation is further evidenced by delivery volumes, which on 19 December reached 2.12 lakh shares, representing an 83.57% increase compared to the five-day average delivery volume.

Liquidity metrics also support active trading, with the stock’s liquidity sufficient to accommodate trade sizes of up to ₹7.38 crore based on 2% of the five-day average traded value. This level of liquidity is favourable for institutional and retail investors seeking to enter or exit positions without significant price impact.

Market Capitalisation and Sector Positioning

Multi Commodity Exchange of India is classified as a mid-cap company with a market capitalisation of approximately ₹53,135 crore. Operating within the capital markets industry and sector, MCX plays a pivotal role in commodity derivatives trading in India. Its market cap grade of 2 reflects its mid-sized stature relative to peers in the sector.

The stock’s recent outperformance relative to sector benchmarks highlights its growing prominence and investor focus. The capital markets sector has seen varied performances, but MCX’s upward trajectory and option market activity suggest it is attracting a distinct level of attention.

Expiry Patterns and Investor Positioning

The concentration of call option contracts at the ₹11,000 strike price with expiry on 30 December 2025 points to a strategic positioning by investors anticipating a price move above this level before the year-end. The open interest figure of 3,868 contracts indicates that many traders are maintaining their bullish bets rather than closing positions, which can be interpreted as confidence in the stock’s near-term prospects.

Such expiry patterns often coincide with increased volatility and trading volumes as market participants adjust their positions in response to price movements and news flow. The active call option market for MCX is a key indicator of investor sentiment and potential price direction in the coming weeks.

Investor Implications and Outlook

For investors monitoring the capital markets sector, MCX’s recent price action and derivatives activity provide valuable insights. The stock’s ability to sustain levels above key moving averages and the strong call option interest at a strike price above the current market value suggest that market participants are positioning for further gains.

However, the proximity of the strike price to the current underlying value also implies that the stock will need to maintain momentum to justify the bullish positioning. Investors should consider the broader market environment, sector trends, and liquidity conditions when evaluating MCX’s prospects.

Given the stock’s mid-cap status and active trading volumes, MCX remains a significant player within the capital markets space, with its derivatives market activity serving as a barometer of investor sentiment.

Summary

Multi Commodity Exchange of India Ltd has demonstrated notable call option activity ahead of the December 2025 expiry, with a high volume of contracts traded at the ₹11,000 strike price. The stock’s recent price highs, outperformance relative to sector and benchmark indices, and technical indicators collectively point to a bullish market stance. Rising delivery volumes and liquidity further support active investor participation. As the expiry date approaches, MCX’s derivatives market will likely remain a key focus for traders and investors alike.

Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Claim Your Free Year →