Reliance Industries Sees Heavy Call Option Activity Ahead of February Expiry

Robust Call Option Trading Highlights Bullish Sentiment

On 2 February 2026, Reliance Industries Ltd (NSE: RELIANCE) recorded a remarkable surge in call option volumes, with 6,510 contracts traded at the 1,400 strike price expiring on 24 February 2026. This activity generated a turnover of ₹456.351 lakhs, underscoring strong investor interest in leveraged bullish exposure. The open interest at this strike stands at 14,332 contracts, indicating sustained commitment from market participants.

The underlying stock price was ₹1,360.00 at the time, suggesting that traders are positioning for a potential upside move above the 1,400 level within the next three weeks. This strike price is approximately 2.9% above the current market price, reflecting moderate optimism without excessive risk-taking.

Price and Volume Dynamics Paint a Mixed Picture

Reliance Industries’ stock performance on the day was largely in line with its sector peers, registering a 1.05% gain compared to the Oil sector’s 1.13% and the broader Sensex’s 0.22% rise. However, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a short- to medium-term downtrend that investors should monitor closely.

Investor participation has shown signs of waning, with delivery volumes on 30 January 2026 falling by 18.26% to 87.07 lakh shares compared to the five-day average. This decline in delivery volume suggests reduced conviction among long-term holders, even as option traders ramp up bullish bets.

Liquidity remains adequate, with the stock’s average traded value supporting trade sizes up to ₹48.01 crore based on 2% of the five-day average traded value. This ensures that option positions can be entered and exited with relative ease, an important factor for active derivatives traders.

Mojo Score and Rating Reflect Cautious Outlook

Reliance Industries currently holds a Mojo Score of 52.0, placing it in the 'Hold' category, a downgrade from its previous 'Buy' rating as of 6 January 2026. The Market Cap Grade remains at 1, reflecting its status as a large-cap heavyweight with a market capitalisation of ₹18,21,470 crore. This rating adjustment suggests that while the stock retains fundamental strength, near-term headwinds and technical weaknesses warrant a more cautious stance.

Analysts note that the downgrade aligns with the stock’s underperformance relative to its moving averages and the recent decline in delivery volumes. However, the active call option interest indicates that a segment of the market anticipates a turnaround or positive catalyst in the near term.

Expiry Patterns and Strike Price Selection

The 24 February 2026 expiry has attracted the highest call option volume for Reliance, with the 1,400 strike price emerging as the focal point. This expiry is less than a month away, intensifying the time sensitivity of these bullish bets. The concentration of open interest at this strike suggests that traders expect the stock to breach this level or at least trade close to it by expiry.

Such positioning often precedes significant corporate announcements, sectoral developments, or macroeconomic shifts that could influence oil prices and, by extension, Reliance’s earnings prospects. Investors should watch for updates on refining margins, petrochemical demand, and energy policy changes that could act as catalysts.

Sectoral Context and Comparative Performance

Within the Oil sector, Reliance Industries remains a bellwether stock, and its option market activity often presages broader sector trends. The sector’s 1.13% gain on the day outpaced Reliance’s 1.05%, indicating that while the company is performing well, it is slightly lagging behind peers. This divergence may be due to stock-specific factors such as recent earnings guidance or capital expenditure plans.

Investors should also consider the broader market environment, where the Sensex’s modest 0.22% rise reflects cautious optimism amid global economic uncertainties. Reliance’s large-cap status and diversified business model provide some defensive qualities, but the technical indicators suggest that a sustained rally requires confirmation.

Investor Takeaways and Strategic Considerations

For investors and traders, the heightened call option activity in Reliance Industries offers several insights. The concentration of contracts at the 1,400 strike price with a sizeable open interest suggests a collective market expectation of a price recovery above this level by late February. This could be driven by improving oil prices, refining margins, or positive developments in Reliance’s digital and retail segments.

However, the stock’s position below all major moving averages and declining delivery volumes caution against overexuberance. Investors should weigh the technical signals against fundamental factors and consider the possibility of volatility as expiry approaches.

Options traders may find opportunities in strategies such as bull call spreads or protective puts to capitalise on the anticipated upside while managing risk. Long-term investors might prefer to monitor the evolving fundamentals and wait for confirmation of a trend reversal before increasing exposure.

Conclusion

Reliance Industries Ltd’s dominant position in the call options market ahead of the 24 February expiry highlights a nuanced market sentiment. While technical indicators suggest caution, the robust option volumes and open interest at the 1,400 strike price reflect a segment of investors betting on a near-term rebound. As the expiry date approaches, market participants will closely watch sectoral developments, corporate announcements, and price action to validate these bullish expectations.

Given the stock’s current 'Hold' rating and mixed technical signals, a balanced approach combining fundamental analysis with tactical option strategies may serve investors best in navigating this critical period.

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