Rs 1300 Puts — Just Below Current Price — Draw 3,450 Contracts on Reliance Industries Ltd

Put Options Event and Cash Market Context

On 24 Jun 2026, Reliance Industries Ltd saw 3,450 put contracts traded at the Rs 1,300 strike, generating a turnover of ₹205.62 lakhs. The open interest at this strike stands at 7,629 contracts, indicating a substantial build-up of positions ahead of the 30 Jun 2026 expiry. The stock closed marginally lower by 0.42% on the day, continuing a two-day losing streak that has seen a cumulative decline of 1.73%. The share price is trading just 3.86% above its 52-week low of Rs 1,253.20, reflecting a subdued momentum in the cash market.

The proximity of the put strike to the current price suggests that these options are at-the-money (ATM), a critical factor in interpreting the intent behind the activity. Reliance Industries Ltd is also trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish technical backdrop. Is this put activity a reflection of growing bearish conviction or a strategic hedge against further downside?

Strike Price Analysis: Moneyness and Implications

The Rs 1,300 strike is effectively ATM given the underlying closed at Rs 1,299.90. This positioning is significant because ATM puts tend to be favoured either by traders expecting a near-term decline or by investors seeking protection against a potential drop. The narrow distance between strike and spot price means the premium paid is relatively high, which can deter speculative put buying unless the outlook is genuinely cautious.

In contrast, out-of-the-money (OTM) puts, which are struck significantly below the current price, often indicate hedging activity, especially if the stock is rising. In this case, the stock’s recent weakness and the ATM strike suggest the put activity is more likely directional. However, the sizeable open interest and turnover also open the possibility of put writing, where sellers collect premium betting the stock will not fall below the strike by expiry.

Interpreting the Put Activity: Bearish Bet, Hedging, or Put Writing?

Three main interpretations emerge from the data. First, the ATM puts could represent bearish positioning, with traders anticipating further declines given the stock’s technical weakness and recent underperformance relative to its sector. Second, the puts might be hedges by long holders protecting against a near-term pullback, especially as the stock nears a 52-week low. Third, some of the activity could be put writing, where sellers are confident the stock will hold above Rs 1,300, collecting premium in a low-volatility environment.

Given the stock’s fall below all key moving averages and the proximity to a recent low, the bearish interpretation carries weight. Yet, the open interest of 7,629 contracts compared to 3,450 traded contracts suggests a mix of fresh and existing positions, which could include hedging. How does the open interest pattern clarify the balance between fresh bearish bets and protective hedges?

Open Interest and Contracts Analysis

The ratio of contracts traded to open interest is approximately 0.45, indicating that a significant portion of the activity is fresh but also that a large base of existing positions remains. This suggests that the market is actively adjusting positions rather than initiating a pure directional bet. The sizeable open interest at this strike also points to a concentration of interest around Rs 1,300, which may act as a psychological or technical support level for the stock.

Put writing activity is harder to discern without premium data, but the high turnover and open interest imply active participation on both sides of the trade. The balance between buyers and sellers at this strike will be critical in the coming days as expiry approaches.

Cash Market Context: Technical and Volume Indicators

Reliance Industries Ltd is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, a configuration that typically signals sustained bearish momentum. The stock’s recent two-day decline of 1.73% and underperformance relative to the Oil sector by 0.3% reinforce this view. However, delivery volumes rose by 2.87% on 23 Jun 2026 compared to the 5-day average, indicating increased investor participation despite the price weakness.

This rise in delivery volume amid falling prices could reflect genuine selling pressure or profit-taking by long-term holders. The put activity at Rs 1,300 may therefore be a response to this increased volatility, serving as a hedge for investors wary of further downside. Is the put activity signalling a cautious stance among investors or a more pronounced bearish conviction?

Delivery Volume and Market Liquidity

The delivery volume of 90.38 lakh shares on 23 Jun 2026 was 2.87% higher than the 5-day average, signalling rising investor participation despite the stock’s recent weakness. The stock’s liquidity, with a trade size capacity of approximately ₹44.24 crore based on 2% of the 5-day average traded value, supports active options and cash market interplay.

Such liquidity is conducive to both hedging and speculative strategies, allowing market participants to adjust positions efficiently. The combination of rising delivery volumes and heavy put activity suggests a nuanced market stance rather than a one-dimensional bearish outlook.

Conclusion: A Nuanced Signal from Put Activity

The heavy put activity at the Rs 1,300 strike on Reliance Industries Ltd is best understood as a blend of cautious bearish positioning and protective hedging. The stock’s position below all major moving averages and near a 52-week low supports a bearish interpretation, yet the significant open interest and rising delivery volumes suggest that many investors are managing risk rather than outright selling.

Put writing cannot be ruled out but appears less likely given the stock’s technical weakness and the ATM strike’s premium cost. The options market is signalling a guarded stance, with participants bracing for potential volatility but not necessarily expecting a sharp collapse.

Should investors interpret this put activity as a warning sign or a prudent hedge amid ongoing market uncertainty?

Get 33% Off on our 1 Year Plan - Limited Period Only! Start Today