Put Option Activity Highlights
Data from the derivatives segment reveals that Reliance Industries Ltd recorded 2,813 put option contracts traded for the expiry dated 30 December 2025. The strike price attracting the highest volume is ₹1,570, closely aligned with the underlying stock price of ₹1,571.8 at the time of analysis. This level of activity corresponds to a turnover of approximately ₹14.64 crores, reflecting substantial investor interest in downside protection or bearish positioning.
Open interest for these put options stands at 2,662 contracts, indicating a sustained interest beyond just intraday trading. Such open interest levels suggest that market participants are maintaining their positions, possibly as a hedge against potential price corrections or volatility in the near term.
Stock Price Context and Market Position
Reliance Industries is trading just 0.48% below its 52-week high of ₹1,581.3, signalling a relatively strong price level. The stock has recorded gains over the last two consecutive sessions, delivering a 1.9% return during this period. This performance aligns closely with the broader oil sector and the Sensex, with the stock’s one-day return at 0.44%, compared to the sector’s 0.61% and Sensex’s 0.60% gains respectively.
The stock’s price movement has been confined within a narrow range of ₹6, reflecting a period of consolidation. Additionally, Reliance Industries is trading above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, which typically indicates a prevailing upward trend in the medium to long term.
Investor Participation and Liquidity
Investor engagement has shown a marked rise, with delivery volumes reaching 95.39 lakh shares on 19 December 2025. This figure represents a 147.9% increase compared to the five-day average delivery volume, highlighting heightened investor interest and participation. The stock’s liquidity is robust, with the capacity to handle trade sizes up to ₹29.15 crores based on 2% of the five-day average traded value, making it accessible for both institutional and retail investors.
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Implications of Put Option Concentration
The concentration of put option activity at the ₹1,570 strike price, which is near the current market price, suggests that investors are positioning themselves for potential downside risk or are seeking to hedge existing long positions. Put options provide the right to sell shares at the strike price, and heavy trading at this level often reflects caution or anticipation of price corrections.
Given the stock’s recent gains and proximity to its 52-week high, the elevated put option interest may also indicate a protective stance by investors amid broader market uncertainties or sector-specific factors affecting the oil industry. This hedging behaviour is common when stocks approach key resistance levels or when volatility is expected to rise.
Expiry Patterns and Market Sentiment
The expiry date of 30 December 2025 is the last trading day for these options, and activity tends to intensify as expiry approaches. Traders often adjust their positions to manage risk or capitalise on expected price movements. The sizeable open interest and turnover in Reliance Industries’ put options highlight the stock as a focal point for derivatives traders during this period.
While the stock’s fundamentals and technical indicators remain supportive, the derivatives market activity provides an additional layer of insight into investor sentiment. The balance between bullish price action and bearish option positioning suggests a nuanced outlook, with market participants preparing for multiple scenarios.
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Sector and Market Capitalisation Context
Reliance Industries operates within the oil sector, a segment that has experienced varied dynamics due to global energy demand, geopolitical factors, and commodity price fluctuations. The company’s market capitalisation stands at ₹21,27,304.11 crore, categorising it as a large-cap stock with significant influence on sectoral and benchmark indices.
The stock’s performance relative to the oil sector and the Sensex indicates alignment with broader market trends. Its ability to maintain levels above key moving averages further supports the view of sustained investor confidence, despite the cautious undertones reflected in derivatives activity.
Conclusion: Balancing Optimism with Caution
Reliance Industries’ derivatives market activity, particularly the heavy put option trading at the ₹1,570 strike price, underscores a complex market environment where investors are balancing optimism in the stock’s price trajectory with prudent risk management. The stock’s proximity to its 52-week high and recent gains are tempered by the notable hedging interest, suggesting that market participants are preparing for potential volatility as the December expiry nears.
For investors and traders, monitoring the evolving open interest and price movements in both the underlying stock and its options will be crucial in assessing the near-term outlook. The interplay between technical strength and derivatives positioning offers valuable insights into market sentiment and potential price action.
As Reliance Industries continues to command attention in both cash and derivatives markets, its performance will remain a key indicator for the oil sector and large-cap space in the Indian equity market.
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