Put Option Activity Concentrated at 1550 Strike Price
Data from the derivatives market reveals that Reliance Industries Ltd recorded 3,393 put option contracts traded for the expiry on 30 December 2025. This volume corresponds to a turnover of approximately ₹62.09 lakhs, with open interest standing at 3,132 contracts. The underlying stock price at the time was ₹1,557.3, placing the 1550 strike price just below the current market level.
This concentration of put options at a strike price slightly beneath the prevailing share price suggests a strategic hedging or bearish positioning by investors. Put options provide the right to sell shares at the strike price, and elevated activity at this level may indicate expectations of potential downside or a protective measure against volatility in the near term.
Stock Price and Market Context
Reliance Industries is trading within 1.73% of its 52-week high of ₹1,581.3, reflecting a relatively strong price level in the context of the oil sector. The stock’s price movement today aligns closely with sector performance, showing a marginal decline of 0.22%, compared to the sector’s 0.09% fall and the Sensex’s 0.11% gain.
The stock has been trading within a narrow range of ₹7.1, indicating limited intraday volatility. Its price remains above the 20-day, 50-day, 100-day, and 200-day moving averages, though it is positioned below the 5-day moving average, suggesting some short-term price pressure.
Investor participation appears to have moderated, with delivery volume on 26 December recorded at 13.49 lakh shares, representing a 75.29% reduction compared to the five-day average delivery volume. Despite this, liquidity remains adequate, with the stock’s traded value supporting trade sizes up to ₹28.01 crore based on 2% of the five-day average traded value.
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Implications of Elevated Put Option Interest
The heightened put option activity at the 1550 strike price for Reliance Industries suggests that investors are either seeking downside protection or positioning for a potential price correction. Put options are commonly used as a hedge against falling prices, and the open interest of over 3,000 contracts indicates a significant level of interest in downside risk mitigation.
Given the stock’s proximity to its 52-week high, this activity may reflect a cautious approach amid broader market uncertainties or sector-specific factors affecting the oil industry. The expiry date of 30 December 2025 is imminent, which often leads to increased options trading as investors adjust their positions ahead of contract settlement.
Sector and Market Capitalisation Context
Reliance Industries operates within the oil industry and is classified as a large-cap stock with a market capitalisation of approximately ₹21,05,246.19 crore. Its scale and sector positioning make it a key barometer for investor sentiment in the energy space.
While the stock’s one-day return of -0.22% slightly underperforms the sector’s -0.09% and the Sensex’s 0.11% gain, the overall trading range and moving average positioning indicate a stable medium-term trend. The current option market activity adds a layer of complexity, signalling that some investors are preparing for potential near-term volatility or downside risk.
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Expiry Patterns and Investor Behaviour
Options expiry dates often bring heightened trading activity as investors rebalance portfolios and adjust hedges. The 30 December 2025 expiry for Reliance Industries is no exception, with put options seeing the most activity among stock options on this date.
Such expiry-driven trading can lead to increased volatility in the underlying stock price, especially when open interest is concentrated at strike prices close to the current market value. The 1550 strike price put options represent a key level where investors may be seeking to limit downside exposure or speculate on a price pullback.
Market participants should monitor the open interest and volume trends closely as expiry approaches, as these can provide insights into potential price support or resistance levels and the overall market sentiment towards Reliance Industries.
Balancing Caution with Market Strength
While the put option activity suggests a degree of caution, it is important to note that Reliance Industries remains near its 52-week high and trades above several key moving averages. This indicates underlying strength in the stock’s medium-term trend despite short-term hedging or bearish positioning.
Investors may view the current option market dynamics as a natural part of risk management in a large-cap oil stock exposed to global commodity price fluctuations and macroeconomic factors. The interplay between bullish price levels and protective put option interest reflects a nuanced market assessment rather than a clear directional signal.
Conclusion
Reliance Industries Ltd’s prominent position in put option trading ahead of the 30 December 2025 expiry highlights active investor engagement in managing downside risk. The concentration of put contracts at the 1550 strike price, combined with the stock’s proximity to its 52-week high and stable moving average positioning, paints a picture of cautious optimism within the oil sector.
Market participants should continue to observe option market trends and underlying price action to gauge evolving sentiment and potential volatility as the expiry date nears. This activity underscores the importance of options as a tool for hedging and strategic positioning in large-cap stocks like Reliance Industries.
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