Surge in Put Option Volumes at Key Strike Prices
Data from the derivatives market reveals that Reliance Industries (NSE: RELIANCE) has attracted substantial put option interest, particularly at strike prices ranging from ₹1250 to ₹1350. The most active put contract is at the ₹1310 strike, with 5,470 contracts traded, generating a turnover of ₹241.77 lakhs and an open interest of 3,954 contracts. This is closely followed by the ₹1290 strike, which saw 4,479 contracts traded and turnover of ₹104.36 lakhs.
Other notable strikes include ₹1350 with 3,050 contracts traded and an open interest of 6,253, ₹1270 with 3,169 contracts and 5,543 open interest, and ₹1250 with 3,752 contracts traded and 4,382 open interest. The underlying stock price currently stands at ₹1,336.10, positioning these strikes both near and below the current market level, indicating a strategic focus on downside protection or bearish bets.
Expiry Patterns and Investor Sentiment
All these put options are set to expire on 30 June 2026, marking a critical juncture for traders and investors. The clustering of open interest and volume around these strikes suggests that market participants are either hedging existing long positions or speculating on a potential decline in Reliance’s share price over the coming week.
The concentration of activity at strikes slightly below the current price hints at a cautious outlook, with investors seeking insurance against a moderate pullback rather than a sharp crash. This is consistent with the stock’s recent performance, which has outperformed its sector by 0.37% and reversed a two-day losing streak, touching an intraday high of ₹1,344.90 on 22 June 2026.
Technical and Fundamental Context
Reliance Industries’ technical indicators present a mixed picture. The stock trades above its 5-day and 20-day moving averages but remains below the 50-day, 100-day, and 200-day averages, signalling a potential resistance zone ahead. Rising delivery volumes, which surged by 67.45% to 1.46 crore shares on 19 June, indicate growing investor participation, yet the cautious option positioning suggests uncertainty about sustained upward momentum.
On the fundamental front, MarketsMOJO recently downgraded Reliance from a 'Hold' to a 'Sell' rating on 11 May 2026, assigning a Mojo Score of 41.0. This downgrade reflects concerns over valuation and near-term earnings prospects in the oil sector, which has faced volatility amid fluctuating crude prices and regulatory challenges. The company’s large-cap status with a market capitalisation of ₹18,11,465.13 crore underscores its systemic importance but also means that shifts in investor sentiment can have amplified market impact.
Bearish Positioning and Hedging Strategies
The heavy put option activity at strikes clustered below the current market price is indicative of a predominantly bearish or defensive stance. Traders may be employing these puts as a hedge against potential downside risks, especially given the stock’s recent volatility and the broader oil sector’s sensitivity to global economic factors.
Open interest figures reinforce this view, with the highest open interest at the ₹1350 strike (6,253 contracts) and substantial interest at ₹1270 and ₹1250 strikes as well. This suggests that investors are not only protecting against minor dips but are also bracing for more pronounced declines, should market conditions deteriorate.
Comparative Performance and Market Implications
Reliance’s 1-day return of 2.22% on 22 June outpaced the oil sector’s 1.64% gain and the Sensex’s modest 0.41% rise, highlighting its relative strength. However, the option market activity signals that this strength may be fragile, with participants positioning for potential corrections.
Given the stock’s liquidity—capable of handling trade sizes up to ₹49.56 crore based on 2% of the 5-day average traded value—these option trades are likely to be meaningful and reflective of genuine market sentiment rather than speculative noise.
Outlook Ahead of Expiry
As the 30 June expiry approaches, investors should closely monitor the evolution of open interest and volume in these put strikes. A sustained increase in put buying could foreshadow further downside or heightened volatility, while a decline might indicate growing confidence or short-covering.
For long-term investors, the recent downgrade and mixed technical signals warrant caution, especially given the oil sector’s cyclical nature and external risks. Meanwhile, traders may find opportunities in the options market to hedge or capitalise on anticipated price movements.
Conclusion
Reliance Industries Ltd’s pronounced put option activity ahead of the June expiry reflects a market grappling with uncertainty amid a complex backdrop of technical resistance and fundamental challenges. The clustering of put contracts at strikes below the current price underscores a defensive posture among investors, balancing recent gains with prudent risk management. As expiry day nears, the options market will remain a key barometer of sentiment for this oil sector giant.
