Rs 1,350 Puts Draw 3,348 Contracts on Reliance Industries Ltd as Stock Trades Near 52-Week Low

Put Options Event and Cash Market Context

On 15 May 2026, Reliance Industries Ltd saw 3,348 put contracts traded at the Rs 1,350 strike price, with a turnover of approximately ₹367.95 lakhs. The open interest at this strike stands at 3,934 contracts, indicating a moderate build-up of positions. The expiry date for these options is 26 May 2026, just 11 days away, which adds urgency to the positioning.

The underlying stock closed at Rs 1,342.80 on the day, down 1.05% and trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend. Delivery volumes rose slightly by 3.19% to 84.91 lakh shares on 14 May, suggesting increased investor participation despite the price weakness. The stock’s performance today was in line with the Oil sector, which itself declined by 1.12%, while the Sensex gained 0.43%.

This combination of put activity and cash market weakness invites a deeper look into the intent behind the options trades — is this a directional bearish bet, a protective hedge, or something else?

Strike Price Analysis: Moneyness and Implications

The Rs 1,350 strike is slightly out-of-the-money (OTM) relative to the closing price of Rs 1,342.80, a difference of about 0.55%. This proximity to the current price means the puts are near at-the-money (ATM), which often indicates more directional intent rather than purely protective hedging.

Given the stock is trading near its 52-week low, the Rs 1,350 strike is also close to a critical support zone. If the puts were significantly out-of-the-money, say 5% or more below the current price, the activity might lean more towards hedging against a sharp downside move. However, the near-ATM nature of these puts suggests traders are positioning for a potential continuation of the downtrend or are seeking downside protection in a volatile environment.

Alternatively, put writing at this strike would imply a bullish stance, with sellers confident the stock will not fall below Rs 1,350 by expiry. However, the open interest and turnover figures do not strongly support heavy put writing here, as the open interest is only slightly higher than the contracts traded on the day.

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

Put options inherently carry ambiguous signals. The three main interpretations are:

• Bearish positioning: Buying ATM or ITM puts on a falling stock to profit from further declines.
• Protective hedging: Buying OTM puts to guard existing long positions against downside risk.
• Put writing (selling puts): Collecting premium with a bullish view that the stock will stay above the strike.

In the case of Reliance Industries Ltd, the stock’s persistent weakness and trading below all major moving averages support the bearish positioning interpretation. The near-ATM strike and the sizeable number of contracts traded suggest fresh bearish bets rather than purely protective hedges, which tend to be more OTM.

Put writing seems less likely given the open interest is only modestly above the day’s traded volume, indicating that most contracts are fresh buys rather than sellers adding to existing positions. However, some mixed strategies cannot be ruled out entirely.

Overall, the data points to a cautious or bearish stance among options traders, though the possibility of hedging by long holders seeking to limit losses remains plausible — how much of this activity is protective versus speculative? — the answer lies in the open interest and price action interplay.

Open Interest and Contracts Analysis

The ratio of contracts traded (3,348) to open interest (3,934) is approximately 0.85, indicating that a significant portion of the activity represents fresh positioning rather than rollovers or closing trades. This ratio is relatively high for put options, suggesting active new interest in downside protection or bearish bets.

Open interest at this strike has not surged dramatically, which implies that while the day’s activity was heavy, it may not yet represent a large-scale shift in sentiment. The proximity of expiry also means some traders could be adjusting or closing positions rather than initiating long-term bearish bets.

Cash Market Context: Technical and Volume Signals

Reliance Industries Ltd is trading below all key moving averages, a technical configuration that typically signals bearish momentum. The stock’s closeness to its 52-week low reinforces this downtrend narrative.

However, delivery volumes have risen modestly, indicating that despite price weakness, investor participation is not evaporating. This could mean that some investors are accumulating at lower levels or that the market is awaiting clearer directional cues.

The combination of rising delivery volumes and heavy put buying near ATM strikes suggests a market bracing for further downside but also possibly protecting existing long positions. This duality is common in large-cap stocks with significant institutional holdings.

Delivery Volume and Market Liquidity

Delivery volume on 14 May was 84.91 lakh shares, up 3.19% from the five-day average, signalling rising investor participation despite the stock’s downtrend. Liquidity remains robust, with the stock’s traded value supporting sizeable trades of around ₹47.71 crore comfortably.

This active participation amid falling prices and heavy put activity suggests a market in flux, where some investors may be locking in profits or hedging, while others are positioning for further declines.

Conclusion: A Cautious Bearish Tilt with Protective Nuances

The heavy put activity at the Rs 1,350 strike on Reliance Industries Ltd amid a downtrend and trading near 52-week lows suggests a predominantly bearish positioning by options traders. The near-ATM strike and significant fresh contracts traded reinforce this view.

However, the rising delivery volumes and liquidity, combined with the strike’s proximity to a key support zone, indicate that some of this put buying may be protective hedging by long holders rather than outright bearish speculation. Put writing appears limited, given the open interest dynamics.

This nuanced picture highlights the importance of connecting options data with cash market signals — should investors interpret this as a signal to hedge or to prepare for further downside?

Get Started for only Rs. 16,999 - Get MojoOne for 2 Years + 1 Year Absolutely FREE! (72% Off) Start Today