Reliance Industries Sees Heavy Put Option Activity Ahead of February Expiry

Put Option Activity Highlights

Data from the derivatives market shows that Reliance Industries Ltd (stock code 605152) has emerged as the most active stock in put options trading. The two most traded put strikes expiring on 24 February 2026 are ₹1,350 and ₹1,300. At the ₹1,350 strike, 1,885 contracts changed hands, generating a turnover of ₹24.38 crores, with open interest standing at 2,540 contracts. Meanwhile, the ₹1,300 strike saw even heavier activity with 2,369 contracts traded, turnover of ₹13.82 crores, and a notably higher open interest of 4,694 contracts.

This concentration of put option volume and open interest below the current market price of ₹1,360 suggests that market participants are positioning for a potential downside or are actively hedging existing long exposures. The elevated open interest at ₹1,300, in particular, indicates a significant level of bearish sentiment or protective strategies being employed by traders.

Underlying Stock Performance and Technical Context

Reliance Industries is currently trading below its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical weakness aligns with the increased put option interest, reinforcing the cautious stance among investors. The stock’s delivery volume on 30 January was 87.07 lakh shares, marking an 18.26% decline compared to the five-day average delivery volume, signalling waning investor participation in the cash market.

Despite this, the stock remains liquid, with a trading capacity of approximately ₹48.01 crores based on 2% of the five-day average traded value, ensuring that sizeable trades can be executed without significant market impact. The stock’s one-day return of 1.06% is broadly in line with the oil sector’s 1.13% gain and outperforms the Sensex’s 0.22% rise, indicating some resilience amid the bearish options positioning.

Market Capitalisation and Mojo Rating

Reliance Industries commands a formidable market capitalisation of ₹18,42,174.99 crores, categorising it as a large-cap stock. However, its Mojo Score has recently been downgraded from a Buy to a Hold rating as of 6 January 2026, with a current score of 52.0. The downgrade reflects a more cautious outlook on the stock’s near-term prospects, likely influenced by the technical weakness and the options market activity.

Expiry Patterns and Investor Behaviour

The expiry date of 24 February 2026 is attracting considerable attention, with put options at strikes ₹1,350 and ₹1,300 dominating volumes. This pattern suggests that investors are either hedging against a potential correction or speculating on a decline in Reliance’s share price over the coming weeks. The open interest figures, particularly the 4,694 contracts at ₹1,300, indicate that many traders are holding these positions into expiry, which could lead to increased volatility as the date approaches.

Such heavy put option activity often precedes market moves, as it reflects a collective market sentiment that is more bearish than the underlying stock’s current price action might imply. Traders and institutional investors may be using these options to protect profits or limit downside risk amid uncertain macroeconomic or sector-specific factors affecting the oil industry.

Sectoral and Broader Market Context

Reliance Industries operates within the oil sector, which has shown mixed performance recently. While the sector gained 1.13% on the day, Reliance’s marginally lower 1.06% return and technical weakness suggest stock-specific pressures. The Sensex’s modest 0.22% rise further highlights Reliance’s relative underperformance within the broader market.

Investors should also consider the company’s large-cap status and the implications of its recent Mojo rating downgrade. The Hold rating signals that while the stock remains a core portfolio holding, caution is warranted given the current technical and options market signals.

Investor Takeaways and Outlook

For investors and traders, the current options market activity in Reliance Industries Ltd offers valuable insights. The heavy put option volumes and open interest at strikes below the current price point to a cautious or bearish stance among market participants. This could be driven by concerns over oil price volatility, regulatory developments, or company-specific factors impacting earnings growth.

Given the stock’s trading below all major moving averages and the recent downgrade in Mojo rating, investors should carefully assess their exposure. Those holding long positions might consider protective hedging strategies using put options, while prospective buyers may wait for clearer technical signals before committing fresh capital.

Meanwhile, the liquidity profile of Reliance ensures that both cash and derivatives market participants can execute sizeable trades efficiently, which is crucial for institutional investors managing large portfolios.

Overall, Reliance Industries remains a pivotal stock within the oil sector, but the current derivatives market activity underscores the importance of vigilance and risk management in the weeks leading up to the February expiry.

Summary

Reliance Industries Ltd’s put option market activity ahead of the 24 February 2026 expiry reveals a pronounced bearish or hedging sentiment, with significant open interest and turnover at ₹1,350 and ₹1,300 strikes. The stock’s technical weakness and recent Mojo rating downgrade to Hold further reinforce a cautious outlook. Investors should monitor these developments closely, balancing the company’s large-cap stature and sectoral context against the evident market caution.

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