Reliance Industries Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Activity Highlights

Data from the derivatives segment reveals that Reliance Industries Ltd recorded 10,759 put option contracts traded for the expiry on 30 December 2025. The strike price attracting the highest volume is ₹1570, closely aligned with the underlying stock price of ₹1575. This level is particularly noteworthy as it sits just below the current market price, suggesting that market participants may be hedging against potential downside or positioning for a bearish outlook in the near term.

The turnover for these put options reached ₹442.19 lakhs, reflecting substantial liquidity and investor interest. Open interest stands at 3,239 contracts, indicating that a sizeable number of positions remain open and could influence price dynamics as expiry nears.

Price and Market Context

Reliance Industries is trading within a narrow range of ₹10.8, a relatively tight band considering its large market capitalisation of ₹21,27,981 crores. The stock is currently 0.37% away from its 52-week high of ₹1581.3, demonstrating resilience despite a recent reversal after four consecutive days of gains. The day’s price change was a modest decline of 0.33%, in line with the oil sector’s performance, which also saw a 0.17% fall, while the Sensex marginally rose by 0.04%.

Technical indicators show that Reliance Industries is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling an overall upward trend in the medium to long term. However, the recent put option activity suggests that some investors may be preparing for potential volatility or a correction in the short term.

Investor Participation and Liquidity

Investor engagement has shown signs of strengthening, with delivery volumes on 22 December reaching 70.67 lakh shares. This figure represents a 39.59% rise compared to the five-day average delivery volume, indicating heightened interest in holding the stock. The liquidity profile remains robust, with the stock capable of supporting trade sizes up to ₹32.11 crores based on 2% of the five-day average traded value.

Interpreting the Put Option Interest

The concentration of put option contracts at the ₹1570 strike price, close to the current market value, is indicative of a cautious or defensive stance among traders. Put options provide the right to sell shares at a predetermined price, and elevated activity at this strike suggests that investors may be seeking protection against a potential decline or speculating on downward price movement.

Open interest of 3,239 contracts further emphasises that these positions are not merely transient trades but represent sustained interest. This could be reflective of hedging strategies by institutional investors or speculative bets by market participants anticipating volatility around the expiry date.

Expiry Patterns and Market Implications

As the 30 December 2025 expiry approaches, the clustering of put options near the current price level may contribute to price support or resistance zones. Market makers and traders often adjust their positions in response to open interest concentrations, which can influence intraday price movements and volatility.

Reliance Industries’ recent price behaviour, including a pause after a series of gains and trading within a narrow range, aligns with the observed derivatives activity. This suggests a market in a state of equilibrium, with participants weighing the potential for either continuation of the uptrend or a pullback.

Sector and Broader Market Context

Reliance Industries operates within the oil sector, which has experienced mixed performance recently. The sector’s 0.17% decline on the day mirrors the stock’s slight dip, while the broader Sensex index posted a marginal gain. This relative stability in Reliance’s price, despite sector headwinds, may be a factor in the hedging activity observed in the options market.

Given the company’s large-cap status and significant market capitalisation, its price movements and derivatives activity often attract close attention from institutional investors and traders alike. The current put option interest could be a reflection of broader market sentiment towards energy stocks amid global economic uncertainties and commodity price fluctuations.

Outlook for Investors

For investors and traders, the current derivatives activity in Reliance Industries offers insights into market expectations and risk management approaches. The heavy put option volume at a strike price just below the current market level suggests that some participants are preparing for downside risk or seeking to hedge existing long positions.

Meanwhile, the stock’s position above key moving averages and proximity to its 52-week high indicate underlying strength. This juxtaposition of technical resilience and cautious options positioning highlights the nuanced market sentiment prevailing around this large-cap oil sector stock.

Market participants should monitor open interest trends and price action closely as the December expiry approaches, as these factors may provide clues to potential volatility or directional shifts in Reliance Industries’ share price.

Conclusion

Reliance Industries Ltd’s prominence in put option trading ahead of the 30 December 2025 expiry underscores the importance of derivatives in signalling market sentiment and hedging behaviour. The concentration of activity at the ₹1570 strike price, combined with the stock’s technical indicators and sector context, paints a picture of cautious optimism tempered by risk awareness among investors.

As the expiry date draws near, the interplay between open interest, price movements, and broader market trends will be critical to watch for those invested in or tracking this heavyweight of the Indian oil sector.

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