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

Call Option Activity and Market Positioning

Among the most actively traded call options for One 97 Communications is the strike price of ₹1,300, with 3,939 contracts exchanged recently. This level is particularly significant as it sits just above the current underlying stock price of ₹1,288.6, indicating that traders are positioning for a possible upward move beyond this threshold before the December expiry. The turnover for these contracts has reached approximately ₹1357.92 lakhs, underscoring the substantial capital flow directed towards this strike.

Open interest at this strike stands at 2,139 contracts, suggesting that a considerable number of traders are maintaining their positions rather than closing them out. This sustained interest often points to a collective market view that the stock price could approach or surpass the ₹1,300 mark within the next month.

Stock Price Context and Technical Indicators

One 97 Communications is currently trading close to its 52-week high, with the latest price approximately 4.72% below the peak of ₹1,353.8. The stock has recorded gains over the past two consecutive days, delivering a cumulative return of 4.14% during this period. This recent price action aligns with the bullish sentiment observed in the options market.

From a technical perspective, the stock price is positioned above its 5-day, 50-day, 100-day, and 200-day moving averages, which typically signals underlying strength. However, it remains slightly below the 20-day moving average, indicating some short-term resistance. This mixed technical picture may be contributing to the cautious optimism reflected in the call option activity.

Trading Volume and Liquidity Considerations

Despite the positive price momentum, investor participation as 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 suggests that while the stock price is advancing, fewer investors are committing to holding shares beyond the trading day, which could imply a more speculative or short-term trading environment.

Liquidity remains adequate for sizeable trades, with the stock’s traded value averaging sufficient to support transactions up to ₹32.41 crore based on 2% of the five-day average traded value. This level of liquidity is important for institutional investors and traders looking to enter or exit positions without significant market impact.

Sector and Market Comparisons

In comparison to its sector and broader market indices, One 97 Communications’ recent price movement has been relatively muted on the latest trading day. The stock recorded a marginal decline of 0.12%, while the Financial Technology sector advanced by 0.55%, and the Sensex index rose by 0.11%. This divergence may reflect sector-specific dynamics or profit-taking in the stock despite the ongoing call option interest.

With a market capitalisation of approximately ₹82,151.81 crore, One 97 Communications is classified as a mid-cap company within the Financial Technology sector. Its size and liquidity profile make it a focal point for both retail and institutional investors seeking exposure to fintech innovation in India.

Expiry Patterns and Investor Sentiment

The December 30 expiry date for the active call options is a critical juncture for market participants. As this date approaches, the concentration of open interest and trading volume at the ₹1,300 strike price suggests that investors are closely monitoring the stock’s ability to sustain or exceed this level. The strike price is strategically placed near the current market price, which often attracts speculative positioning and hedging strategies.

Such activity can lead to increased volatility as traders adjust their positions in response to price movements and news flow. The interplay between option expiry dynamics and underlying stock performance will be a key factor to watch in the coming weeks.

Outlook and Investor Considerations

Investors analysing One 97 Communications should consider the implications of the concentrated call option activity alongside the stock’s technical and fundamental context. The proximity to the 52-week high and the positioning of open interest near the ₹1,300 strike price indicate a market expectation of potential upward price movement, albeit with some short-term resistance as suggested by the 20-day moving average.

However, the notable decline in delivery volume signals a reduction in long-term investor commitment, which may temper enthusiasm and introduce volatility. Market participants should weigh these factors carefully, especially as the December expiry approaches and option-related price dynamics intensify.

Given the stock’s liquidity and mid-cap status, it remains accessible for a range of investors, but the evolving market assessment calls for close monitoring of price action and volume trends in the near term.

Summary

One 97 Communications is currently a focal point in the options market, with significant call option volumes at the ₹1,300 strike price expiring on 30 December 2025. The stock’s price is near its yearly high, supported by gains over recent sessions and technical indicators that suggest underlying strength. However, reduced delivery volumes and mixed short-term moving averages highlight a nuanced market environment. Investors should remain attentive to the interplay between option expiry dynamics and stock price movements as the month progresses.

Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →