One 97 Communications Sees Heavy Put Option Activity Amid Market Movements

Put Option Activity Highlights

On 28 Nov 2025, One 97 Communications witnessed the most active put option contracts among its peers, particularly at the strike price of ₹1,300, set to expire on 30 Dec 2025. A total of 1,428 contracts exchanged hands, generating a turnover of approximately ₹29.87 crores. The open interest at this strike stands at 861 contracts, signalling sustained interest in downside protection or speculative bearish positioning.

The underlying stock price at the time was ₹1,325.4, placing the ₹1,300 strike slightly out-of-the-money. This suggests that traders are either anticipating a potential pullback below this level or are employing these puts as a hedge against recent gains.

Stock Price Performance and Market Context

One 97 Communications is trading close to its 52-week high, just 1.94% shy of the peak price of ₹1,353.8. The stock has outperformed its sector by 2.9% on the day, registering a 2.61% gain compared to the Financial Technology sector’s decline of 0.21%. Over the past three consecutive trading sessions, the stock has delivered a cumulative return of 6.98%, reflecting sustained buying interest.

Intraday, the stock touched a high of ₹1,336.4, marking a 3.35% rise from the previous close. Furthermore, One 97 Communications is trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a strong technical position.

However, delivery volume data reveals a contrasting trend. On 27 Nov 2025, the delivery volume was 15.45 lakh shares, which is 78.87% lower than the five-day average delivery volume. This decline in investor participation may indicate cautiousness or profit-booking among long-term holders despite the price strength.

Liquidity and Market Capitalisation

With a market capitalisation of approximately ₹84,830.53 crores, One 97 Communications is classified as a mid-cap stock within the Financial Technology sector. The stock’s liquidity supports trade sizes up to ₹33.21 crores based on 2% of the five-day average traded value, making it accessible for institutional and retail investors alike.

Interpreting the Put Option Interest

The surge in put option trading at the ₹1,300 strike price with expiry at the end of December suggests a cautious stance among market participants. Put options are commonly used either as a speculative bet on price declines or as a protective hedge against existing long positions. Given the stock’s proximity to its yearly high and recent gains, the elevated put activity may reflect investors seeking insurance against a potential correction.

Open interest of 861 contracts at this strike price further indicates that these positions are not merely transient but may be held over the coming weeks. This could imply that traders are preparing for volatility or a possible retracement in the near term.

Sector and Broader Market Comparison

Within the Financial Technology sector, One 97 Communications has demonstrated relative strength. While the sector showed a marginal decline of 0.21% on the day, the stock’s 2.61% gain highlights its outperformance. The Sensex, meanwhile, recorded a modest 0.07% increase, underscoring the stock’s ability to move independently of broader market trends.

This divergence may be driven by company-specific developments or investor sentiment focused on the fintech space’s evolving dynamics. The stock’s technical positioning above all major moving averages supports the notion of underlying strength despite the cautious options market activity.

Investor Participation and Delivery Volumes

The notable decline in delivery volume, down nearly 79% compared to the recent average, suggests a reduction in long-term investor engagement. This could be interpreted as some shareholders opting to book profits or reduce exposure amid the stock’s recent rally. Such a pattern often precedes periods of consolidation or increased volatility.

Lower delivery volumes alongside rising prices may also indicate that short-term traders and speculators are driving the recent gains rather than sustained institutional buying.

Outlook and Market Implications

The current options market activity in One 97 Communications highlights a nuanced investor outlook. While the stock’s price action and technical indicators suggest strength, the heavy put option interest and declining delivery volumes point to a degree of caution. Investors may be balancing optimism about the company’s prospects with prudent risk management amid broader market uncertainties.

For market participants, monitoring the evolution of open interest and price movements in the coming weeks will be crucial to gauge whether the put option activity translates into a meaningful correction or remains a hedging mechanism.

Given the stock’s mid-cap status and significant liquidity, One 97 Communications remains a focal point for traders and investors seeking exposure to the Financial Technology sector’s growth potential, while also managing downside risks.

Summary

One 97 Communications Ltd is currently trading near its 52-week high with strong recent returns and technical positioning above key moving averages. The stock’s put options at the ₹1,300 strike price for December expiry have seen substantial trading volumes and open interest, reflecting a cautious or hedging stance among investors. Despite outperformance relative to its sector and the Sensex, delivery volumes have declined sharply, indicating a possible shift in investor participation. These factors combined suggest a market environment where optimism is tempered by prudent risk management strategies.

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