Reliance Industries Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Activity Concentrated Near Current Market Levels

Data from the derivatives market reveals that Reliance Industries Ltd has witnessed substantial put option volumes for contracts expiring on 30 December 2025. The strike prices attracting the most attention are ₹1,550 and ₹1,560, closely aligned with the stock’s underlying value of ₹1,557.1 as of the latest trading session. Specifically, 10,096 contracts were traded at the ₹1,550 strike, generating a turnover of approximately ₹15.09 crores, while the ₹1,560 strike saw 11,757 contracts traded with a turnover exceeding ₹33.5 crores.

Open interest figures further underscore the concentration of bearish positioning or hedging at these levels, with 3,438 contracts outstanding at ₹1,550 and 3,374 at ₹1,560. This clustering near the current market price suggests that investors are actively managing downside risk or speculating on potential price corrections in the near term.

Stock Performance and Market Context

Reliance Industries closed the latest session approximately 1.45% below its 52-week high of ₹1,581.3, maintaining a position close to its peak levels. The stock has experienced a modest decline over the past two days, with a cumulative return of -1.06% during this period. Despite this short-term dip, the share price remains above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating an overall upward trend in the medium to long term.

Investor participation, however, has shown signs of moderation. Delivery volume on 23 December stood at 26.74 lakh shares, representing a decline of 52.87% compared to the five-day average delivery volume. This reduction in investor engagement may reflect a wait-and-watch approach amid the current market dynamics and option activity.

Sector and Broader Market Comparison

In terms of daily returns, Reliance Industries’ share price movement of -0.75% closely mirrors the oil sector’s decline of -0.78%, while the broader Sensex index recorded a marginal fall of -0.08%. This alignment with sector performance suggests that the stock’s recent price action is influenced by sector-wide factors, including global oil price fluctuations and domestic economic indicators.

Implications of Put Option Concentration

The prominence of put options at strike prices near the current market value often indicates a protective stance by investors. Such activity can be interpreted as a hedge against potential downside risks or as a speculative bet anticipating a price correction. Given Reliance Industries’ status as a large-cap heavyweight in the oil sector with a market capitalisation exceeding ₹21 lakh crores, these option positions carry significant weight in market sentiment analysis.

Put options provide the right to sell shares at predetermined prices, and elevated open interest at these strikes suggests that market participants are either safeguarding existing long positions or positioning for a possible decline. The expiry date of 30 December 2025 adds a temporal dimension to this strategy, with traders likely adjusting their portfolios ahead of year-end market movements and macroeconomic developments.

Liquidity and Trading Dynamics

Reliance Industries continues to demonstrate sufficient liquidity to support sizeable trades, with the stock’s average traded value over five days enabling transactions up to approximately ₹29.8 crores without significant market impact. This liquidity is crucial for options traders who require efficient entry and exit points to manage their positions effectively.

The recent fall in delivery volumes may also reflect a shift towards derivatives trading as investors seek more flexible risk management tools amid uncertain market conditions. The interplay between spot market activity and derivatives positioning will remain a key factor to monitor in the coming sessions.

Outlook and Investor Considerations

While Reliance Industries remains positioned near its yearly highs, the concentrated put option activity signals a degree of caution among investors. This could be attributed to a variety of factors including global oil price volatility, regulatory developments, or broader market uncertainties as the year draws to a close.

Investors and traders should closely monitor the evolution of open interest and volume in these put strikes, alongside price movements and sector trends. The balance between bullish momentum indicated by the stock’s position above key moving averages and the hedging reflected in options markets will be critical in shaping near-term price trajectories.

Given the company’s large-cap stature and integral role in the oil sector, shifts in Reliance Industries’ option market activity often presage wider market sentiment changes. As such, this data provides valuable insight for portfolio managers, traders, and market analysts seeking to gauge risk appetite and positioning ahead of the December expiry.

Summary

Reliance Industries Ltd’s derivatives market activity reveals a pronounced focus on put options at strike prices ₹1,550 and ₹1,560 for the 30 December 2025 expiry. This concentration near the current share price of ₹1,557.1, combined with open interest levels exceeding 3,300 contracts at each strike, highlights a strategic approach by investors to manage downside exposure or speculate on potential price adjustments. Despite a recent short-term decline, the stock maintains an overall upward trend supported by its position above multiple moving averages and a market capitalisation of over ₹21 lakh crores. The interplay between spot market performance and derivatives positioning will remain a key area to watch as the expiry date approaches.

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