Reliance Industries Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Activity Concentrated Near Key Strike Prices

Data from the derivatives market reveals that Reliance Industries Ltd has witnessed substantial put option contracts traded for the expiry on 30 December 2025. The strike price of ₹1,500 recorded the highest number of contracts traded at 2,947, with an open interest of 4,914 contracts. This strike price is slightly below the current underlying value of ₹1,525.6, indicating a strategic positioning by market participants anticipating potential downside or seeking protection against declines.

Close behind, the ₹1,520 strike price saw 2,477 contracts traded, with an open interest of 1,763 contracts. The turnover for these strikes was ₹200.54 lakhs and ₹262.31 lakhs respectively, underscoring the liquidity and investor focus on these levels. The concentration of activity at these strikes suggests that traders are positioning for possible price movements within this range as the expiry date nears.

Underlying Stock Performance and Market Context

Reliance Industries Ltd, a major player in the oil sector, currently holds a market capitalisation of approximately ₹20,81,835 crores, categorising it as a large-cap stock. The stock price is trading about 3.92% below its 52-week high of ₹1,581.3, reflecting a relatively strong position within its annual range.

However, the stock has experienced a consecutive five-day decline, with cumulative returns falling by 2.92% over this period. On the day of analysis, the stock underperformed its sector by 0.25%, closing down by 0.74%, while the broader Sensex index showed a marginal gain of 0.04%. This recent price behaviour may be contributing to the increased put option activity as investors seek to hedge or express cautious views.

Technical Indicators and Trading Range

From a technical standpoint, Reliance Industries Ltd is trading above its 50-day, 100-day, and 200-day moving averages, which generally indicates a medium to long-term bullish trend. However, it remains below its 5-day and 20-day moving averages, signalling some short-term pressure or consolidation. The stock has been trading within a narrow range of ₹10.5, suggesting limited volatility in recent sessions.

Investor participation has shown signs of rising interest, with delivery volume on 4 December reaching 80.49 lakh shares, a 43.83% increase compared to the five-day average delivery volume. This heightened activity may reflect increased hedging or speculative positioning ahead of the December expiry.

Implications of Put Option Concentration

The heavy put option activity at strike prices near the current market value of Reliance Industries Ltd suggests a cautious stance among traders. Put options are often used as a hedge against potential declines or as a speculative bet on downward price movement. The significant open interest at ₹1,500, in particular, indicates that a sizeable number of investors are either protecting existing long positions or positioning for a possible correction.

Given the stock’s recent five-day losing streak and its position below short-term moving averages, the put option interest may reflect expectations of continued short-term weakness or volatility. However, the stock’s standing above longer-term moving averages and proximity to its 52-week high also points to underlying resilience, creating a complex risk-reward scenario for market participants.

Expiry Patterns and Market Sentiment

The 30 December 2025 expiry date is a focal point for options traders, as positions are adjusted or closed ahead of the year-end. The clustering of put options at strikes ₹1,500 and ₹1,520 suggests that these levels are viewed as critical support zones or reference points for hedging strategies. The turnover figures, exceeding ₹200 lakhs for each strike, highlight the active participation and liquidity in these contracts.

Such expiry dynamics often lead to increased volatility as traders rebalance portfolios and manage risk exposures. The current data implies that investors are preparing for potential price fluctuations in Reliance Industries Ltd, possibly influenced by broader oil sector trends, macroeconomic factors, or company-specific developments.

Sector and Market Capitalisation Context

Reliance Industries Ltd operates within the oil sector, a segment often sensitive to global commodity price fluctuations and geopolitical developments. The company’s large market capitalisation of over ₹20 lakh crores places it among the most influential stocks in the Indian equity market, making its option activity a key indicator for broader market sentiment.

Comparing the stock’s one-day return of -0.74% with the sector’s -0.49% and the Sensex’s marginal 0.04% gain highlights a relative underperformance on the day. This divergence may be contributing to the put option interest as investors seek to mitigate downside risk or capitalise on short-term price movements.

Investor Takeaways and Outlook

For investors and traders, the current put option activity in Reliance Industries Ltd offers valuable insights into market expectations and risk management strategies. The concentration of contracts near ₹1,500 and ₹1,520 strike prices ahead of the December expiry suggests that these levels will be closely watched in the coming weeks.

While the stock’s position above key long-term moving averages indicates underlying strength, the short-term price pressures and increased hedging activity warrant cautious monitoring. Market participants should consider these factors alongside broader sector trends and macroeconomic developments when formulating investment decisions.

Overall, the derivatives market data reflects a nuanced view of Reliance Industries Ltd’s near-term prospects, balancing resilience with prudent risk management amid evolving market conditions.

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