ONGC Sees Surge in Call Option Activity Ahead of February Expiry

Robust Call Option Activity Highlights Investor Confidence

Data from the derivatives market reveals that ONGC’s call options with a strike price of ₹280 have witnessed a remarkable 7,053 contracts traded, generating a turnover of approximately ₹27.61 crores. This level of activity is significant given the underlying stock’s current market price of ₹268.05, which is just 4.86% shy of its 52-week high of ₹280.3. The open interest for these contracts stands at 3,893, indicating sustained investor interest and potential for further price movement towards or beyond the strike price as expiry approaches.

The expiry date of 24 February 2026 is less than two weeks away, intensifying the focus on short-term price action. The concentration of call options at this strike price suggests that traders are positioning for a rebound or continuation of the uptrend, anticipating that ONGC’s shares will close above ₹280 by expiry, thereby rendering these options profitable.

Price Action and Market Context

Despite the bullish options activity, ONGC’s stock price has experienced a modest correction in recent sessions. On 13 February 2026, the stock underperformed its sector by 2.17%, closing down 3.13% on the day and touching an intraday low of ₹266.3, a 3.64% decline. This followed three consecutive days of gains, signalling a short-term trend reversal. The stock also opened with a gap down of 2.3%, reflecting some profit-taking or broader market pressures.

However, the technical backdrop remains constructive. ONGC’s share price is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, though it is currently below the 5-day moving average, indicating a minor short-term pullback within a longer-term uptrend. Rising investor participation is evident, with delivery volumes on 12 February reaching 99.89 lakh shares, a 27.3% increase compared to the five-day average, underscoring strong underlying demand.

Fundamental and Market Positioning

ONGC is a heavyweight in the oil sector with a market capitalisation of ₹3,37,277.29 crores, categorised as a large-cap stock. The company’s recent upgrade in the MarketsMOJO Mojo Grade from Hold to Buy on 5 February 2026, with a Mojo Score of 72.0, reflects improved fundamentals and positive outlook. The market cap grade of 1 further confirms its status as a top-tier stock within its industry.

Sector-wise, ONGC’s performance has lagged slightly behind the broader oil sector and Sensex indices on the day, with the sector down 1.22% and Sensex down 0.98%. This relative underperformance may have contributed to the recent dip in the stock price, yet the strong call option interest suggests investors are anticipating a recovery or positive catalyst in the near term.

Implications of Elevated Call Option Interest

The heavy call option volume at the ₹280 strike price indicates a predominantly bullish sentiment among traders, who are willing to pay premiums to secure upside exposure. This could be driven by expectations of favourable developments such as improved crude oil prices, government policy support, or strong quarterly earnings results. The open interest level suggests that many positions remain open, which could lead to increased volatility as expiry nears.

Investors should note that while the options market is signalling optimism, the underlying stock’s recent price weakness and gap down opening highlight the importance of monitoring broader market trends and sector dynamics. The stock’s liquidity, with an average traded value sufficient to support trades up to ₹8.55 crores, ensures that institutional and retail investors can execute sizeable transactions without significant price impact.

Technical and Fundamental Outlook

From a technical perspective, ONGC’s position above key moving averages supports a medium- to long-term bullish outlook, despite short-term fluctuations. The recent upgrade in Mojo Grade to Buy reflects improved earnings prospects and operational metrics, which may underpin a sustained price recovery. The company’s large market cap and leadership in the oil sector further enhance its appeal as a core portfolio holding.

However, investors should remain cautious of near-term volatility, especially given the stock’s recent underperformance relative to its sector and the broader market. The call option activity suggests that market participants are positioning for a rebound, but this is contingent on positive triggers materialising in the coming weeks.

Conclusion: Strategic Positioning Ahead of Expiry

In summary, ONGC’s call option market activity underscores a strong bullish bias among traders, who are betting on the stock to surpass the ₹280 level by the 24 February expiry. This optimism is supported by the company’s solid fundamentals, recent upgrade in Mojo Grade, and technical positioning above key moving averages. Nevertheless, the recent price dip and sector underperformance warrant a cautious approach, with investors advised to monitor market developments closely.

For those considering exposure to ONGC, the current elevated call option volumes offer insights into market expectations and potential price trajectories. The stock’s liquidity and large-cap status make it a viable candidate for both short-term trading and longer-term investment strategies within the oil sector.

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