Reliance Industries Sees Heavy Call Option Activity Ahead of February Expiry

Call Option Activity and Market Positioning

On 19 February 2026, Reliance Industries witnessed a remarkable volume of 10,019 call option contracts traded at the 1440 strike price, with a turnover of ₹349.16 lakhs. The open interest at this strike stands at 8,055 contracts, underscoring sustained interest and accumulation in this segment. The underlying stock price was ₹1427.40, just shy of the strike price, suggesting that traders are positioning for a potential rally above this level before expiry.

This heightened activity in call options is indicative of a bullish bias among market participants, who appear to be anticipating a rebound or positive catalyst in the oil sector, where Reliance operates. The 1440 strike price is particularly significant as it represents a near-the-money level, offering a balance between risk and reward for option buyers.

Stock Performance and Technical Indicators

Reliance Industries’ stock performance on the day was slightly negative, with a 1-day return of -0.94%, underperforming both the oil sector’s decline of -0.59% and the broader Sensex’s fall of -0.36%. Despite this, the stock remains above its 20-day moving average, although it trades below the 5-day, 50-day, 100-day, and 200-day moving averages. This mixed technical picture suggests short-term consolidation amid longer-term resistance levels.

Investor participation has notably waned, with delivery volumes on 18 February falling by 43.25% compared to the 5-day average, registering 25.06 lakh shares. This decline in delivery volume points to reduced conviction among long-term holders, even as derivatives traders remain active.

Liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹27.2 crore based on 2% of the 5-day average traded value, ensuring that option positions can be entered and exited with relative ease.

Mojo Score and Analyst Ratings

Reliance Industries currently holds a Mojo Score of 62.0, placing it in the 'Hold' category, a downgrade from its previous 'Buy' rating as of 6 January 2026. The downgrade reflects a cautious stance given the stock’s recent price action and sector headwinds. The company’s market capitalisation stands at a substantial ₹19,32,030.59 crore, affirming its status as a large-cap heavyweight within the oil sector.

The Mojo Grade of 'Hold' suggests that while the stock remains fundamentally sound, investors should be mindful of near-term volatility and sector-specific risks. The downgrade also aligns with the observed decline in investor participation and the stock’s inability to decisively break above key moving averages.

Expiry Patterns and Implications for Traders

The expiry date of 24 February 2026 is fast approaching, and the concentration of call option activity at the 1440 strike price indicates that traders are positioning for a potential breakout above this level within the next few days. Open interest data supports this view, with a sizeable number of contracts still outstanding, which could lead to increased volatility as expiry nears.

Options traders often use such strike price concentrations to gauge market sentiment and potential price targets. The current scenario suggests that market participants expect Reliance Industries to either test or surpass the 1440 level, which would represent a modest upside from the current price of ₹1427.40.

However, the stock’s recent underperformance relative to the sector and the broader market tempers this optimism, signalling that any rally may be met with resistance or profit-taking.

Sector Context and Broader Market Trends

The oil sector has experienced moderate weakness recently, with the sector index declining by 0.59% on the day, slightly outperforming Reliance’s own 0.94% drop. This sectoral softness is influenced by global crude price fluctuations, geopolitical tensions, and evolving energy demand forecasts.

Reliance Industries, as a diversified conglomerate with significant oil and petrochemical operations, remains sensitive to these macro factors. The company’s ability to navigate these headwinds while maintaining operational efficiency will be critical to sustaining investor confidence.

From a derivatives perspective, the active call option interest suggests that traders are selectively bullish, possibly anticipating positive developments such as improved refining margins, strategic investments, or favourable government policies.

Investor Takeaway

For investors and traders, the current scenario presents a nuanced picture. The active call option volume at the 1440 strike price ahead of expiry signals a tactical bullish stance, but the underlying stock’s technical indicators and declining delivery volumes counsel caution.

Those considering exposure to Reliance Industries should weigh the potential for near-term upside against the risks of sector volatility and technical resistance. Monitoring open interest changes and price movements in the coming days will be essential to gauge whether the bullish positioning in options translates into sustained price gains.

Given the Mojo Grade downgrade to 'Hold', a prudent approach would be to maintain positions with defined risk parameters or explore alternative large-cap opportunities within and beyond the oil sector.

Conclusion

Reliance Industries Ltd’s prominence in call option trading ahead of the 24 February expiry highlights a market expectation of a possible price recovery or breakout above the 1440 level. However, mixed technical signals and reduced investor participation suggest that this optimism is tempered by caution. Investors should remain vigilant and consider broader sector dynamics alongside derivatives activity when making investment decisions.

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