Multi Commodity Exchange Sees Surge in Bullish Call Option Activity Amid Volatile Trading

Volatility and Price Action Set the Stage

MCX’s stock price has experienced significant turbulence over the past few sessions. The share price declined by 12.75% on 1 Feb 2026, underperforming the Capital Markets sector which fell by just 0.56%, while the broader Sensex managed a modest gain of 0.19%. The stock opened sharply lower, down 9.02%, and touched an intraday low of ₹2,148.8, representing a 15% drop from recent levels. This marked the second consecutive day of losses, with the stock falling 18.11% over this period.

Despite this weakness, MCX’s price remains above its 50-day, 100-day, and 200-day moving averages, though it is trading below its short-term 5-day and 20-day averages. This technical setup suggests a potential short-term correction within a longer-term uptrend, attracting speculative interest in derivatives markets.

Call Option Activity Highlights Bullish Positioning

The most active call option for MCX is the 2,500 strike expiring on 24 Feb 2026. This contract saw 6,840 contracts traded, generating a turnover of ₹2,027.205 lakhs. Open interest stands at 2,129 contracts, indicating sustained interest and accumulation at this strike price. The underlying stock price at the time was ₹2,202.7, implying that traders are positioning for a rebound above the 2,500 level within the next three weeks.

The weighted average price of traded contracts clustered near the day’s low, reflecting aggressive buying at depressed levels. This suggests that market participants are anticipating a recovery or a positive catalyst that could drive the stock price higher in the near term.

Investor Participation and Liquidity Support Active Trading

Investor engagement in MCX shares has risen sharply, with delivery volumes reaching 40.51 lakh shares on 30 Jan 2026, an increase of 82.93% compared to the five-day average. This heightened participation underpins the liquidity necessary to support large options trades and indicates growing conviction among market participants.

Liquidity metrics confirm that MCX is sufficiently liquid to accommodate sizeable trades, with a 2% threshold of the five-day average traded value equating to approximately ₹32.16 crore. This level of liquidity is conducive to active options market activity and reduces execution risk for institutional investors.

Fundamental and Technical Ratings Support Positive Outlook

MarketsMOJO assigns MCX a robust Mojo Score of 82.0, upgrading its Mojo Grade from Buy to Strong Buy as of 18 Nov 2025. This upgrade reflects improved fundamentals, quality metrics, and positive trend assessments. Despite the recent price weakness, the stock’s mid-cap market capitalisation of ₹54,728 crore and its leadership position in the capital markets sector underpin its long-term growth prospects.

MCX’s market cap grade is rated 2, indicating a mid-tier valuation relative to peers. The company’s strong institutional interest and improving delivery volumes suggest confidence in its earnings trajectory and business model resilience.

Expiry Patterns and Strike Price Significance

The February 24 expiry is attracting the bulk of call option activity, with the 2,500 strike price serving as a key psychological and technical level. This strike is approximately 14% above the current underlying price, signalling that traders are betting on a meaningful price recovery within the next three weeks.

Open interest accumulation at this strike price indicates that investors are not merely speculating but potentially hedging or positioning for a breakout. The combination of high turnover and open interest suggests that this expiry could be pivotal for MCX’s near-term price direction.

Risks and Considerations

While the call option activity points to bullish sentiment, investors should remain cautious given the stock’s recent volatility and underperformance relative to its sector. The 12.75% single-day decline and 18.11% two-day fall highlight downside risks that could persist if broader market conditions deteriorate or if company-specific news disappoints.

Moreover, the stock’s failure to hold above its short-term moving averages may signal further consolidation or correction before any sustained rally. Traders engaging in call options should monitor open interest changes and volume patterns closely to gauge shifts in market sentiment.

Outlook and Investor Takeaways

MCX’s current options market activity reveals a clear tilt towards bullish positioning despite recent price setbacks. The concentration of call option trades at the 2,500 strike price for the February expiry suggests that investors expect a rebound driven by either sectoral tailwinds or company-specific catalysts.

Given the stock’s strong fundamental ratings and improving investor participation, long-term investors may view the recent weakness as a buying opportunity. However, the elevated volatility and short-term technical challenges warrant a cautious approach for traders seeking to capitalise on options strategies.

Monitoring open interest trends and price action in the coming weeks will be crucial to confirm whether the bullish sentiment in the options market translates into sustained upward momentum in the underlying stock.

Summary

In summary, Multi Commodity Exchange of India Ltd is currently a focal point for active call option trading, with significant turnover and open interest at the 2,500 strike price expiring in late February. This activity reflects a bullish outlook among investors, supported by strong fundamental grades and rising delivery volumes. While the stock has faced recent volatility and underperformance, the options market positioning suggests confidence in a near-term recovery, making MCX a stock to watch closely in the capital markets sector.

Unlock special upgrade rates for a limited period. Start Saving Now →