Put Option Activity Highlights
Data from recent trading sessions reveals that Reliance Industries has recorded 5,590 put contracts traded at the 1550 strike price, with a turnover of ₹463.97 lakhs. The open interest for these contracts stands at 4,132, indicating a substantial build-up of positions ahead of the expiry date. The underlying stock price at ₹1,557.9 is marginally above the strike price, suggesting that traders are positioning for potential downside or seeking protection against volatility.
Expiry Patterns and Market Implications
The 30 December 2025 expiry is a critical date for options traders, as it marks the settlement of these contracts. The concentration of put options at the 1550 strike price, which is just 1.53% away from the stock’s 52-week high of ₹1,581.3, reflects a cautious stance. Investors may be hedging existing long positions or speculating on a near-term correction in the stock price. This activity is particularly noteworthy given the stock’s recent performance and technical indicators.
Price and Technical Overview
Reliance Industries has been trading in a narrow range of ₹12.8, maintaining levels above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The stock has recorded gains over the last three consecutive days, delivering a cumulative return of 1.84% during this period. Its one-day return of 0.78% aligns with the sector’s performance, which also stands at 0.78%, while the Sensex posted a 0.48% return on the same day.
Investor Participation and Liquidity
Despite the positive price momentum, investor participation appears to be moderating. Delivery volume on 11 December was 23.2 lakh shares, representing a decline of 67.88% compared to the five-day average delivery volume. This reduction in delivery volume may indicate a cautious approach by investors amid the heightened options activity. Nevertheless, the stock remains sufficiently liquid, with a trade size capacity of ₹31.23 crore based on 2% of the five-day average traded value, supporting active trading and hedging strategies.
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Sector and Market Capitalisation Context
Reliance Industries operates within the oil sector, a key segment of the Indian economy. The company’s market capitalisation stands at ₹21,00,104 crore, categorising it as a large-cap stock. Its performance today is in line with the broader oil sector, reflecting the sector’s current dynamics and investor sentiment. The stock’s proximity to its 52-week high underscores its resilience amid fluctuating crude oil prices and global energy market conditions.
Bearish Positioning and Hedging Strategies
The prominence of put options at the 1550 strike price suggests that market participants are either hedging against potential downside risks or speculating on a price correction. Put options provide a form of insurance for long holders, allowing them to limit losses if the stock price declines. Alternatively, traders may be positioning for volatility or a pullback following the recent upward momentum. The open interest data supports the view that these positions are not merely speculative but represent meaningful exposure.
Technical Indicators Supporting Current Trends
Reliance Industries’ trading above all major moving averages signals a generally bullish technical backdrop. However, the narrow trading range and falling delivery volumes indicate a degree of consolidation and caution among investors. This environment often precedes significant price movements, making the options market activity a valuable indicator of underlying sentiment.
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Outlook and Investor Considerations
Investors monitoring Reliance Industries should consider the implications of the heavy put option activity alongside the stock’s technical and fundamental indicators. The options market suggests a degree of caution or hedging, which may reflect expectations of near-term volatility or a price correction. However, the stock’s position near its 52-week high and its alignment with sector performance indicate underlying strength.
Given the stock’s liquidity and trading volumes, investors have the flexibility to adjust their positions in response to evolving market conditions. The interplay between options activity and price action will be critical to watch as the December expiry approaches, providing insights into market sentiment and potential price trajectories.
Summary
Reliance Industries Ltd is currently experiencing significant put option trading at the 1550 strike price ahead of the 30 December 2025 expiry. This activity, combined with the stock’s technical positioning and sector alignment, highlights a complex market environment where hedging and cautious positioning coexist with sustained price strength. Investors should remain attentive to these dynamics as they navigate the evolving landscape of this large-cap oil stock.
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