Reliance Industries Sees Heavy Put Option Activity Ahead of February Expiry

Put Option Activity Highlights

On 18 February 2026, Reliance Industries recorded a striking 5,780 put option contracts traded at the ₹1,430 strike price, generating a turnover of ₹261.83 lakhs. The open interest for these puts stands at 2,195 contracts, indicating sustained interest and potential accumulation of bearish bets or protective hedges. The underlying stock price was ₹1,427.40 at the time, placing the strike price almost at-the-money, which often attracts speculative and hedging activity.

The expiry date of 24 February 2026 is just days away, intensifying option market dynamics as traders adjust positions ahead of expiry. The concentration of put options at this strike price suggests a market consensus that downside risk or volatility could materialise in the near term, prompting investors to seek downside protection or speculate on a price correction.

Stock Performance and Market Context

Reliance Industries, a large-cap oil sector leader with a market capitalisation of ₹19,42,180 crores, has seen a modest decline of 0.94% on the day, slightly underperforming the oil sector’s 0.59% fall and the broader Sensex’s 0.36% dip. The stock’s mojo score currently stands at 62.0 with a mojo grade of Hold, downgraded from Buy on 6 January 2026, reflecting a cautious stance by analysts amid recent price action and sector headwinds.

Technical indicators show the stock trading above its 20-day moving average but below its 5-day, 50-day, 100-day, and 200-day moving averages, signalling mixed momentum. Falling investor participation is evident from a 43.25% drop in delivery volume to 25.06 lakh shares on 18 February compared to the five-day average, suggesting reduced conviction among long-term holders.

Liquidity remains robust, with the stock’s average traded value supporting trade sizes up to ₹27.2 crores comfortably, ensuring that option and stock market participants can execute sizeable trades without significant price impact.

Implications of Heavy Put Option Interest

The surge in put option activity at the ₹1,430 strike price suggests that investors are either hedging existing long positions or speculating on a near-term decline. Given the proximity of the strike price to the current market price, these puts offer a cost-effective way to protect portfolios against downside risk or to capitalise on expected volatility.

Put options are often used as insurance against falling prices, and the elevated open interest indicates that a sizeable number of market participants are positioning for a potential correction or increased uncertainty in Reliance Industries’ share price. This could be driven by sector-specific factors such as fluctuating crude oil prices, regulatory developments, or broader macroeconomic concerns impacting the oil industry.

Expiry Patterns and Market Sentiment

With the 24 February expiry imminent, option writers and holders will be closely monitoring price movements to adjust their positions. The concentration of open interest at the ₹1,430 strike price may create a price magnet effect, where the stock gravitates towards this level as expiry approaches, due to unwinding of option positions and hedging flows.

Investors should also be aware that heavy put option activity can sometimes precede a short-term bounce if the market perceives the downside risk as overdone. Conversely, sustained bearish sentiment could lead to further declines if negative catalysts emerge.

Sector and Peer Comparison

Reliance Industries’ performance is broadly in line with the oil sector, which has experienced modest declines amid global crude price volatility and geopolitical uncertainties. The stock’s downgrade from Buy to Hold by analysts on 6 January 2026 reflects tempered expectations, although its large-cap status and diversified business model continue to provide some defensive qualities.

Investors looking for alternative opportunities within the oil sector or beyond may consider evaluating other large-cap stocks with stronger mojo grades or more favourable technical setups.

Investor Takeaways

For investors and traders, the heavy put option activity in Reliance Industries ahead of the 24 February expiry is a clear signal to closely monitor the stock’s price action and sector developments. Those holding long positions may consider protective strategies such as buying puts or tightening stop-loss levels to mitigate downside risk.

Conversely, speculative traders might view the elevated put volumes as an opportunity to capitalise on potential volatility, either through directional bets or volatility plays using options strategies.

Given the stock’s current Hold mojo grade and recent downgrade from Buy, a cautious approach is warranted until clearer directional cues emerge post-expiry. Monitoring open interest changes and price reactions around the ₹1,430 strike price will be critical in assessing market sentiment and potential trend reversals.

Conclusion

Reliance Industries Ltd’s prominence in put option trading underscores the market’s cautious stance amid ongoing sectoral and macroeconomic uncertainties. The concentration of activity at the ₹1,430 strike price ahead of the 24 February expiry highlights investor concerns about near-term downside risk or volatility. While the stock remains a large-cap heavyweight with significant liquidity and market presence, investors should weigh the current technical and fundamental signals carefully and consider hedging or alternative opportunities as appropriate.

As expiry approaches, the interplay between option market positioning and underlying price movements will be pivotal in shaping Reliance Industries’ short-term trajectory.

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