Reliance Industries Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Trading Highlights

Data from the derivatives segment reveals that Reliance Industries has witnessed substantial volumes in put options with strike prices clustered around the current underlying value of ₹1,558.9. The most actively traded put contracts are at strike prices of ₹1,550, ₹1,560, and ₹1,570, all expiring on 30 December 2025.

Specifically, the ₹1,560 strike put option recorded the highest number of contracts traded at 1,997, generating a turnover of approximately ₹208.49 lakhs and an open interest of 3,333 contracts. Close behind, the ₹1,550 strike saw 1,094 contracts traded with a turnover of ₹95.29 lakhs and an open interest of 4,028 contracts, the highest open interest among the three strikes. The ₹1,570 strike put option also attracted 1,092 contracts with a turnover of ₹139.78 lakhs and an open interest of 2,182 contracts.

This concentration of put option activity near the current stock price suggests a strategic positioning by market participants, potentially as a hedge against downside risk or in anticipation of price corrections in the near term.

Price and Market Context

Reliance Industries closed the latest session at ₹1,558.9, approximately 1.43% below its 52-week high of ₹1,581.3. The stock has experienced a modest decline over the past two days, with a cumulative fall of 0.54%, underperforming its sector by 0.32% on the most recent trading day. Despite this, the stock continues to trade above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating an overall upward trend over various time horizons.

Investor participation has shown signs of moderation, with delivery volumes on 1 December recorded at 50.18 lakh shares, representing a 38.68% reduction compared to the five-day average delivery volume. Liquidity remains adequate, with the stock supporting trade sizes up to ₹37 crore based on 2% of the five-day average traded value.

Interpreting the Put Option Activity

The clustering of put option trades at strike prices slightly below and above the current market price indicates a nuanced market outlook. The ₹1,550 and ₹1,560 strikes, both below the current price, suggest that investors may be seeking protection against a potential decline in Reliance Industries’ share price. The relatively high open interest at these strikes supports the view that these positions are not merely speculative but could be part of hedging strategies by institutional or retail investors.

Meanwhile, the activity at the ₹1,570 strike, which is marginally above the current price, may reflect a more cautious stance, with investors possibly anticipating volatility or a pullback in the near term. The expiry date of 30 December 2025 is significant as it marks the end of the calendar year, a period often associated with portfolio rebalancing and strategic positioning ahead of the new financial year.

Sector and Market Comparison

Within the oil sector, Reliance Industries remains a dominant large-cap stock with a market capitalisation of approximately ₹21,09,576.58 crore. The sector itself has shown mixed performance, with Reliance underperforming its peers marginally on the latest trading day. The broader Sensex index also recorded a decline of 0.31%, indicating a cautious market environment.

Reliance’s ability to maintain trading levels above key moving averages despite recent short-term weakness suggests resilience, yet the heightened put option activity signals that investors are preparing for potential downside risks or increased volatility.

Implications for Investors

For market participants, the observed put option activity in Reliance Industries offers insights into prevailing market sentiment and risk management approaches. The concentration of open interest and turnover in put options near the current price level suggests that investors are actively seeking downside protection or positioning for potential price corrections.

Given the stock’s proximity to its 52-week high and recent short-term declines, these option trades may reflect a cautious stance amid broader market uncertainties or sector-specific factors such as oil price fluctuations and regulatory developments.

Investors should consider these dynamics alongside fundamental and technical analyses when evaluating their exposure to Reliance Industries. The stock’s liquidity and trading volumes support active participation, but the evolving option market activity underscores the importance of monitoring risk and market signals closely.

Looking Ahead

As the 30 December 2025 expiry approaches, the options market activity in Reliance Industries will remain a key indicator of investor expectations and market positioning. Changes in open interest and trading volumes across strike prices will provide further clues on sentiment shifts and potential price trajectories.

Market watchers and investors alike will be attentive to how the stock performs relative to its moving averages and sector peers, as well as any developments in the oil industry that could influence price direction.

Summary

Reliance Industries Ltd is currently experiencing significant put option trading activity concentrated around strike prices close to its current market value, with expiry set for the end of December 2025. This activity points to a cautious or hedging approach by investors amid recent price fluctuations and sector conditions. While the stock remains above key moving averages and near its 52-week high, the options data suggests preparation for possible downside or volatility. Investors should integrate these insights with broader market and fundamental factors to navigate the evolving landscape effectively.

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