One 97 Communications Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Activity Highlights

Data from recent trading sessions reveals that One 97 Communications has recorded 995 put option contracts traded for the expiry date of 30 December 2025. The turnover for these contracts stands at approximately ₹320.58 lakhs, with an open interest of 563 contracts. The underlying stock value at the time of this activity was ₹1288.6, placing the ₹1300 strike price close to the current market price, which suggests that market participants are actively engaging in protective or speculative strategies near the money.

The concentration of put options at this strike price and expiry date indicates a heightened focus on downside risk management or speculative bets on potential price corrections in the coming weeks. Such activity often reflects a cautious stance among traders, possibly anticipating volatility or a shift in market sentiment for the financial technology sector.

Stock Price and Market Context

One 97 Communications is trading approximately 4.72% below its 52-week high of ₹1353.8, maintaining a position close to its peak levels. The stock has recorded gains over the last two consecutive days, delivering a cumulative return of 4.14% during this period. This recent upward momentum aligns with the broader sector performance, as the stock's daily returns have been largely in line with the financial technology sector's trends.

Technical indicators show the stock price currently sits above its 5-day, 50-day, 100-day, and 200-day moving averages, though it remains below the 20-day moving average. This mixed technical picture may contribute to the cautious positioning observed in the options market, as traders weigh short-term resistance against longer-term support levels.

Investor participation, measured by delivery volume, has shown a marked decline. On 26 November, delivery volume was recorded at 10.53 lakh shares, representing an 85.96% reduction compared to the five-day average delivery volume. This drop in investor participation could indicate a wait-and-watch approach ahead of the December expiry, with market participants possibly seeking to hedge existing positions rather than initiate new directional bets.

Liquidity remains adequate for sizeable trades, with the stock's traded value representing about 2% of its five-day average, equating to a trade size capacity of approximately ₹32.41 crore. This level of liquidity supports active options trading and allows for efficient execution of hedging or speculative strategies.

Sector and Market Capitalisation Overview

Operating within the financial technology sector, One 97 Communications holds a mid-cap market capitalisation of approximately ₹82,151.81 crore. The sector itself has shown moderate daily returns, with the financial technology index registering a 0.55% gain, while the broader Sensex index recorded a 0.11% increase on the same day. The stock's one-day return was marginally negative at -0.12%, indicating a slight divergence from sector and market trends.

The company's position near its 52-week high, combined with the active put option interest, suggests that investors are balancing optimism about the stock's growth prospects with prudent risk management. This dynamic is typical in sectors characterised by rapid innovation and regulatory developments, where market participants seek to protect gains while remaining exposed to potential upside.

Expiry Patterns and Investor Sentiment

The concentration of put options expiring on 30 December 2025 highlights a key date for market watchers. Expiry periods often bring increased volatility as traders adjust or close positions. The strike price of ₹1300, being close to the current market price, is a focal point for hedging activity. Investors holding long positions may be purchasing puts as insurance against a price decline, while speculators might be betting on a downward move.

Open interest figures provide insight into the level of outstanding contracts that have not been exercised or closed. An open interest of 563 contracts at this strike price indicates a substantial volume of positions that could influence price movements as expiry approaches. Market participants will be closely monitoring price action and volume trends to gauge potential shifts in sentiment.

Given the stock's recent gains and proximity to its yearly high, the put option activity may also reflect a strategic approach to locking in profits or mitigating downside risk amid uncertain macroeconomic conditions and sector-specific challenges.

Implications for Investors

For investors and traders, the active put option trading in One 97 Communications offers several insights. The strike price and expiry concentration suggest a market expectation of potential price consolidation or correction in the near term. Those holding long positions may consider the put options as a form of portfolio insurance, while others might view the activity as an opportunity to speculate on downside moves.

Given the stock's liquidity and trading volumes, executing options strategies remains feasible without significant market impact. However, the decline in delivery volumes signals a cautious approach among investors, possibly reflecting uncertainty or a preference for short-term hedging over fresh commitments.

Market participants should also consider broader sector trends and macroeconomic factors influencing financial technology companies, including regulatory developments, digital payment adoption rates, and competitive dynamics. These elements will likely shape price movements and options market behaviour in the coming weeks.

Conclusion

One 97 Communications stands out as a focal point in the options market with substantial put option activity ahead of the December expiry. The data points to a nuanced market stance, balancing recent gains with prudent risk management. Investors and traders should monitor price action closely as expiry approaches, considering both technical indicators and sector fundamentals to inform their strategies.

As the financial technology sector continues to evolve, the interplay between stock price movements and options market positioning will remain a critical area for analysis and decision-making.

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