Multi Commodity Exchange of India Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Trading Highlights

Data from the options market reveals that MCX put options expiring on 30 December 2025 have attracted substantial interest. The strike prices of ₹10,000, ₹10,100, ₹10,200, and ₹10,300 have recorded the highest number of contracts traded, with the ₹10,000 strike leading the activity. Specifically, 3,243 contracts were traded at the ₹10,000 strike, generating a turnover of approximately ₹884.89 lakhs and an open interest of 1,735 contracts. This level of open interest indicates a strong build-up of positions at this strike price.

Following closely, the ₹10,200 strike saw 2,225 contracts traded, with turnover reaching ₹848.92 lakhs and open interest standing at 921 contracts. The ₹10,300 strike recorded 1,457 contracts traded and turnover of ₹639.02 lakhs, while the ₹10,100 strike had 1,207 contracts traded with turnover of ₹392.20 lakhs. The underlying value of MCX at the time was ₹10,212, placing these strike prices in close proximity to the current market level.

Market Context and Price Movements

MCX’s stock price has recently experienced a mild pullback, falling by 1.95% on the day under review. The stock touched an intraday low of ₹10,200, representing a 2.15% decline from the previous close. This movement followed four consecutive days of gains, signalling a potential short-term trend reversal. Despite this, MCX remains trading above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, which may indicate underlying support in the medium to long term.

In comparison to its sector, MCX underperformed, with the Capital Markets sector declining by 0.21% and the Sensex edging up by 0.07% on the same day. The stock is currently 2.16% away from its 52-week high of ₹10,471.5, suggesting that while it remains near its peak levels, some profit-taking or cautious positioning may be underway.

Investor Participation and Liquidity

Investor participation metrics show a decline in delivery volumes, with 1.44 lakh shares delivered on 27 November, down by 13.22% compared to the five-day average. This reduction in delivery volume could reflect a temporary pullback in investor conviction or a shift towards shorter-term trading strategies. Nevertheless, liquidity remains adequate, with the stock’s traded value supporting trade sizes of up to ₹10.63 crore based on 2% of the five-day average traded value, ensuring that market participants can execute sizeable trades without significant price impact.

Interpreting the Put Option Activity

The concentration of put option contracts at strike prices near the current market level suggests a cautious stance among traders and investors. Put options are often used as a hedge against potential downside risk or as a speculative bet on price declines. The high open interest at the ₹10,000 strike price, in particular, indicates that many market participants may be positioning for protection or anticipating a possible correction below this level before the December expiry.

Moreover, the clustering of activity across the ₹10,000 to ₹10,300 strikes points to a range where traders expect significant price action or volatility. This range effectively acts as a zone of interest where downside protection is being sought, possibly reflecting concerns about near-term market uncertainties or sector-specific factors affecting the capital markets industry.

Sector and Market Capitalisation Context

Multi Commodity Exchange of India operates within the Capital Markets sector and is classified as a mid-cap company with a market capitalisation of approximately ₹52,171.33 crore. Its performance relative to the sector and broader market indices is an important consideration for investors analysing risk and reward dynamics. The recent underperformance relative to the sector and the slight decline in price after a series of gains may be influencing the increased put option activity as market participants seek to manage exposure.

Expiry Patterns and Strategic Implications

The December 2025 expiry date is a key focal point for option traders, as it represents the next major settlement period for derivatives contracts. The build-up of open interest and turnover in put options ahead of this expiry suggests that traders are actively adjusting their portfolios in anticipation of potential price movements. This activity may also reflect broader market sentiment or hedging requirements ahead of year-end, when portfolio rebalancing and risk management typically intensify.

Outlook for Investors and Traders

For investors and traders monitoring Multi Commodity Exchange of India, the current put option activity offers valuable insights into market sentiment and risk management strategies. The significant open interest and turnover at strike prices close to the current market value highlight a zone where downside protection is being sought. This may signal expectations of increased volatility or a cautious outlook in the near term.

At the same time, the stock’s position above key moving averages and proximity to its 52-week high suggest that longer-term support levels remain intact. Market participants should consider these factors alongside broader sector trends and macroeconomic developments when assessing their exposure to MCX.

Overall, the options market data underscores the importance of monitoring derivatives activity as a complementary tool for understanding price dynamics and investor positioning in the capital markets sector.

Summary

Multi Commodity Exchange of India Ltd is currently witnessing heavy put option trading concentrated around the December 2025 expiry, with strike prices ranging from ₹10,000 to ₹10,300 attracting the most contracts. This activity reflects a cautious or hedging stance among market participants amid recent price declines and sector underperformance. While the stock remains supported by key moving averages and near its 52-week high, the options data suggests that traders are preparing for potential near-term volatility or downside risk. Investors should weigh these signals carefully in the context of broader market conditions and their individual risk tolerance.

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