Reliance Industries Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Activity and Market Positioning

Reliance Industries, a dominant player in the oil sector with a market capitalisation exceeding ₹20 lakh crores, recorded significant put option volumes for the expiry dated 30 December 2025. Data shows that 4,213 contracts were traded at the ₹1540 strike price, generating a turnover of approximately ₹2.93 crores. Open interest at this strike stands at 3,790 contracts, indicating sustained interest in downside protection or speculative bearish bets.

The underlying stock price at ₹1544.7 is marginally above the put strike price, suggesting that traders are positioning for potential downside or volatility in the near term. This activity is particularly noteworthy given Reliance Industries is trading just 2.32% below its 52-week high of ₹1581.3, reflecting a nuanced market outlook where investors may be hedging gains or anticipating short-term corrections.

Price and Volume Dynamics

On 18 December 2025, Reliance Industries outperformed its sector by 0.42%, registering a daily return of 0.07% compared to the sector’s negative 0.35% and the Sensex’s modest 0.16% gain. The stock’s price remains above its 50-day, 100-day, and 200-day moving averages, signalling a longer-term uptrend. However, it is trading below its 5-day and 20-day moving averages, which may reflect short-term consolidation or profit booking.

Investor participation, as measured by delivery volume, has shown a slight decline. On 17 December, delivery volume stood at 39.07 lakh shares, down by 3.81% relative to the five-day average. This dip in delivery volume could indicate reduced conviction among buyers or increased caution ahead of the expiry.

Liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹22.39 crores based on 2% of the five-day average traded value. This liquidity facilitates active options trading and allows for efficient price discovery in both the cash and derivatives markets.

Expiry Patterns and Strike Price Concentration

The concentration of put option activity at the ₹1540 strike price for the 30 December expiry suggests a key level of interest for traders. This strike is closely aligned with the current market price, making it a focal point for hedging strategies. Market participants may be using these puts to protect existing long positions or to speculate on a potential pullback in the stock price.

Options expiry often brings heightened volatility as traders adjust or close positions. The sizeable open interest at this strike price could lead to increased price sensitivity around ₹1540 in the coming days, as option writers and holders manage their exposures.

Bearish Positioning and Hedging Implications

Heavy put option volumes typically indicate a degree of bearish sentiment or risk aversion. In the case of Reliance Industries, the elevated put activity may reflect investor caution amid broader market uncertainties or sector-specific factors affecting the oil industry. Given the stock’s proximity to its yearly highs, some investors might be seeking downside protection to safeguard profits.

Alternatively, the put buying could be part of more complex hedging strategies involving other derivatives or cash positions. This layered approach to risk management is common among institutional investors and sophisticated traders, especially in large-cap stocks with significant liquidity.

Context Within the Oil Sector and Broader Market

Reliance Industries operates within the oil sector, which has experienced varied performance amid fluctuating crude prices and geopolitical developments. The stock’s ability to maintain levels near its 52-week high while exhibiting active put option interest suggests a complex market environment where optimism is tempered by caution.

Comparatively, the sector’s one-day return of -0.35% contrasts with Reliance’s slight positive movement, highlighting the company’s relative resilience. The Sensex’s 0.16% gain on the same day further underscores Reliance’s alignment with broader market trends, albeit with nuanced investor positioning visible in derivatives activity.

Investor Takeaways and Outlook

For investors and traders, the pronounced put option activity in Reliance Industries ahead of the December expiry warrants close monitoring. The strike price concentration near current levels may act as a technical support zone, with option-related dynamics potentially influencing price movements in the short term.

Market participants should consider the implications of this derivatives activity alongside fundamental factors and sector trends. The interplay between bullish long-term indicators and short-term hedging or bearish positioning creates a layered risk-reward scenario for those engaged with Reliance Industries stock.

As expiry approaches, volatility could increase, offering both opportunities and challenges for investors. Staying informed on open interest changes, volume patterns, and price action will be crucial for navigating this phase effectively.

Conclusion

Reliance Industries’ prominence in put option trading ahead of the 30 December 2025 expiry highlights a significant market focus on downside risk management and speculative positioning. The stock’s proximity to its 52-week high combined with active put volumes at the ₹1540 strike price paints a picture of cautious optimism tempered by prudent hedging. Investors should weigh these factors carefully as they assess their exposure to this large-cap oil sector heavyweight in the current market environment.

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