Concentration of Call Option Trades at Key Strike Prices
Data from the derivatives market reveals that Reliance Industries’ call options with strike prices ranging from ₹1,550 to ₹1,600 have witnessed substantial trading volumes. The most active strike price is ₹1,560, where 9,350 contracts were traded, generating a turnover of approximately ₹844.31 lakhs. This is closely followed by the ₹1,550 strike with 6,966 contracts traded and a turnover of ₹817.11 lakhs, and the ₹1,570 strike with 6,904 contracts traded, amounting to ₹441.86 lakhs in turnover.
The ₹1,580 strike price call options also recorded notable activity with 6,024 contracts traded and a turnover of ₹261.74 lakhs, while the ₹1,600 strike saw 5,397 contracts exchanged, contributing ₹93.64 lakhs in turnover. The open interest figures further underscore the market’s focus on these strikes, with the ₹1,560 strike holding an open interest of 11,541 contracts and the ₹1,550 strike at 7,780 contracts.
Expiry Patterns and Market Positioning
All these call options are set to expire on 30 December 2025, indicating a concentrated expiry cycle that market participants are closely monitoring. The clustering of open interest and trading volumes around strike prices slightly above the current underlying value suggests a bullish tilt among traders, anticipating upward price movement in Reliance Industries’ shares in the near term.
Reliance Industries is trading near its 52-week high, just 0.91% shy of the peak of ₹1,581.30, which may be encouraging traders to take positions in call options with strike prices in the ₹1,550 to ₹1,600 range. The stock’s performance today outpaced the oil sector by 0.36%, with a daily return of 1.48% compared to the sector’s 1.10% and the Sensex’s 0.57% gains, reflecting relative strength in the underlying equity.
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Technical Indicators and Liquidity Considerations
Reliance Industries is trading above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained positive momentum in the stock price. This technical positioning may be contributing to the heightened call option interest as traders seek to capitalise on potential further gains.
Liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹23.5 crores based on 2% of the 5-day average traded value. However, delivery volumes have shown a slight decline, with 33.88 lakh shares delivered on 18 December, down by 6.77% compared to the 5-day average delivery volume. This could indicate a cautious stance among long-term investors despite the active derivatives market.
Market Capitalisation and Sector Context
Reliance Industries holds a commanding market capitalisation of approximately ₹21,20,943.85 crores, positioning it firmly as a large-cap heavyweight within the oil sector. The sector itself has been experiencing varied dynamics, with crude oil prices and refining margins influencing stock valuations. Reliance’s diversified business model, spanning refining, petrochemicals, and retail, continues to attract investor interest amid evolving energy market conditions.
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Implications for Investors and Traders
The concentration of call option activity in Reliance Industries ahead of the December expiry highlights a market expectation of potential price appreciation. Traders appear to be positioning for a move above the current underlying value, with strike prices clustered around and slightly above ₹1,560. This suggests a degree of confidence in the stock’s near-term prospects, supported by its technical strength and sectoral positioning.
Investors should consider the broader market context, including crude oil price trends, refining margins, and macroeconomic factors that could influence Reliance’s performance. While the derivatives market activity signals optimism, it is essential to balance this with fundamental analysis and risk management strategies.
Summary
Reliance Industries is witnessing significant call option trading volumes and open interest at strike prices near its current market value, with expiry set for 30 December 2025. The stock’s proximity to its 52-week high and its outperformance relative to the oil sector and Sensex underpin the active positioning in the options market. Technical indicators and liquidity metrics further support the stock’s appeal among traders and investors. As the expiry date approaches, market participants will be closely watching price movements and volume trends to gauge the stock’s trajectory in the oil sector landscape.
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