Reliance Industries Sees Robust Call Option Activity Ahead of February Expiry

Strong Call Option Volumes Reflect Investor Optimism

The most active call options for Reliance Industries are concentrated around strike prices ranging from ₹1,400 to ₹1,500, all expiring on 24 February 2026. Notably, the ₹1,500 strike call saw the highest number of contracts traded at 16,548, generating a turnover of ₹812.5 lakhs and an open interest of 12,295 contracts. This is closely followed by the ₹1,450 strike call with 12,819 contracts traded and a turnover of ₹1,559.4 lakhs, indicating substantial investor interest at these levels.

Other significant strikes include ₹1,400 with 9,809 contracts traded and a turnover of ₹2,683.7 lakhs, ₹1,420 with 6,004 contracts and ₹1,213.4 lakhs turnover, and ₹1,440 with 6,889 contracts traded generating ₹986.2 lakhs in turnover. The underlying stock price at ₹1,436 suggests that investors are positioning for a potential upside, with strike prices both slightly below and above the current market value attracting attention.

Expiry Patterns and Open Interest Indicate Sustained Interest

Open interest figures further reinforce the bullish sentiment. The ₹1,400 strike has the highest open interest at 16,214 contracts, followed by ₹1,500 at 12,295 and ₹1,440 at 4,830 contracts. This concentration of open interest near and above the current stock price suggests that traders are expecting Reliance Industries to maintain or exceed these levels by expiry, betting on continued strength in the oil sector.

The expiry date of 24 February 2026 is just over three weeks away, providing a near-term horizon for these positions to play out. The clustering of activity around these strikes indicates a strategic approach by investors to capitalise on expected price movements within this timeframe.

Stock Performance and Sector Context

Reliance Industries has outperformed its sector peers, with a day’s gain of 3.42% compared to the Oil Exploration/Refineries sector’s 2.51% rise and the Sensex’s 2.56% increase on 3 February 2026. The stock has been on a two-day winning streak, delivering a cumulative return of 6.94%, and opened the day with a gap up of 6.01%, touching an intraday high of ₹1,489.5, a 7.13% rise from the previous close.

Despite this strong short-term momentum, the stock’s Mojo Grade was downgraded from Buy to Hold on 6 January 2026, reflecting a more cautious outlook based on its current fundamentals and valuation metrics. The Mojo Score stands at 52.0, indicating a neutral stance. Market cap grading remains at 1, confirming Reliance’s status as a large-cap heavyweight with a market capitalisation of ₹19,45,969.03 crores.

Technical Indicators and Liquidity Considerations

Technically, Reliance’s price is trading above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This mixed technical picture suggests that while short-term momentum is positive, longer-term trends require confirmation. Investor participation has slightly waned, with delivery volumes falling by 8.54% against the five-day average, signalling some caution among long-term holders.

Liquidity remains robust, with the stock’s traded value supporting sizeable trade sizes up to ₹40.32 crores based on 2% of the five-day average traded value. This ensures that option traders and institutional investors can execute large trades without significant market impact.

Implications of Call Option Activity for Investors

The heavy call option activity at strike prices near and above the current market price reflects a predominantly bullish stance among traders. The concentration of open interest and turnover at ₹1,450 and ₹1,500 strikes suggests expectations of a rally towards these levels by expiry. Investors utilising call options may be seeking leveraged exposure to anticipated upside or hedging existing positions against further gains.

However, the downgrade to Hold and the mixed technical signals counsel prudence. While short-term momentum is encouraging, investors should monitor broader market conditions, oil sector dynamics, and Reliance’s earnings outlook before committing to aggressive bullish strategies.

Outlook and Strategic Considerations

Reliance Industries remains a pivotal player in the oil sector, with its diversified business model spanning refining, petrochemicals, retail, and digital services. The recent surge in call option volumes may be driven by expectations of favourable earnings results, improved refining margins, or positive developments in its digital ventures.

Investors should weigh these bullish signals against the broader macroeconomic environment, including crude oil price volatility, regulatory changes, and global energy demand trends. The stock’s current valuation and technical setup suggest that while upside potential exists, risk management remains essential.

For option traders, the near-term expiry on 24 February 2026 offers a defined timeframe to capitalise on anticipated price movements. Monitoring open interest changes and strike price concentrations will be key to understanding evolving market sentiment.

Summary

In summary, Reliance Industries Ltd is experiencing robust call option activity with significant volumes and open interest clustered around strike prices from ₹1,400 to ₹1,500. This reflects a bullish market positioning ahead of the 24 February expiry, supported by recent strong price performance and sector outperformance. However, the downgrade to Hold and mixed technical indicators advise a balanced approach. Investors and traders should remain vigilant to market developments and consider both the opportunities and risks inherent in the current environment.

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