Robust Call Option Activity Highlights Investor Optimism
The call option with a strike price of ₹800 expiring on 24 February 2026 recorded a remarkable 5,592 contracts traded, generating a turnover of ₹2.97 crores. Open interest stands at 2,162 contracts, indicating sustained interest and potential for further price movement. This level of activity is notable given the underlying stock’s current market price of ₹785.5, suggesting that traders are positioning for a breakout above the ₹800 mark within the next week.
Such concentrated call buying often reflects bullish sentiment, as investors anticipate upward momentum in the stock price. The ₹800 strike price is just 1.9% above the current market value, making it a realistic target for short-term gains. This is further supported by the stock’s recent performance, which has outpaced its sector and the broader Sensex.
Stock Performance and Technical Indicators
On 18 February 2026, SBI Cards & Payment Services Ltd outperformed its Non Banking Financial Company (NBFC) sector by 0.73%, with a day gain of 1.13% compared to the sector’s 0.54% and Sensex’s marginal 0.03%. The stock has recorded gains for three consecutive days, delivering a cumulative return of 3.35% over this period. Intraday, it touched a high of ₹795.6, up 2.45% from the previous close.
Technically, the stock is trading above its 5-day and 20-day moving averages, signalling short-term strength. However, it remains below its 50-day, 100-day, and 200-day moving averages, indicating that medium- to long-term momentum is yet to fully recover. Rising delivery volumes, which surged by 30.37% to 11.61 lakh shares on 17 February compared to the 5-day average, reflect increasing investor participation and confidence.
Fundamental Context and Market Capitalisation
SBI Cards & Payment Services Ltd operates within the NBFC sector, a space that has seen mixed performance amid tightening credit conditions and regulatory scrutiny. The company’s market capitalisation stands at ₹74,052 crores, classifying it as a mid-cap stock. Despite its sizeable market presence, the company’s Mojo Score has declined to 46.0, with a recent downgrade from Hold to Sell on 15 February 2026. This downgrade reflects concerns over valuation and near-term earnings growth prospects.
Its Market Cap Grade is 2, indicating moderate market capitalisation relative to peers. While the downgrade may temper some investor enthusiasm, the active call option interest suggests that traders are betting on a short-term rebound or positive catalysts ahead.
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Expiry Patterns and Market Implications
The 24 February 2026 expiry date for the most active call options is just days away, intensifying the focus on short-term price movements. The concentration of open interest at the ₹800 strike price suggests that traders expect the stock to breach this level imminently. Should the stock close above ₹800 by expiry, these call options would move into the money, potentially triggering further buying pressure.
Conversely, if the stock fails to surpass this threshold, the call options may expire worthless, leading to a potential unwinding of bullish positions. The current liquidity, with a 5-day average traded value supporting trade sizes of approximately ₹2.36 crores, ensures that market participants can enter and exit positions with relative ease.
Investor Sentiment and Strategic Positioning
Despite the downgrade in fundamental ratings, the active call option trading reveals a divergence between short-term market sentiment and longer-term analyst outlooks. Investors appear to be capitalising on technical momentum and potential near-term catalysts, such as quarterly earnings announcements or sectoral developments within the NBFC space.
Given the stock’s recent outperformance relative to its sector and the Sensex, coupled with rising delivery volumes, there is a clear indication of growing investor conviction. However, the mixed technical signals and fundamental downgrade counsel caution, suggesting that investors should closely monitor price action and broader market conditions.
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Outlook and Investor Considerations
For investors considering exposure to SBI Cards & Payment Services Ltd, the current environment presents a nuanced picture. The surge in call option activity and short-term price gains highlight potential upside, especially if the stock breaches the ₹800 level before expiry. However, the fundamental downgrade and mixed technical indicators suggest that risks remain, particularly if broader NBFC sector headwinds intensify.
Prudent investors should weigh the short-term bullish signals against the company’s longer-term growth prospects and valuation concerns. Monitoring open interest trends, delivery volumes, and sector developments will be crucial in assessing whether the current momentum can be sustained beyond the near-term expiry.
Overall, SBI Cards & Payment Services Ltd remains a stock to watch closely, with active options market positioning providing valuable insights into investor expectations and potential price trajectories in the coming days.
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