Call Option Trading Highlights
Data from the derivatives segment reveals that Shriram Finance’s call options with strike prices of ₹870, ₹880, and ₹900 have recorded the highest volumes in recent sessions. The 870 strike call option leads with 6,783 contracts traded, generating a turnover of approximately ₹1202.02 lakhs and an open interest of 2,472 contracts. Close behind, the 880 strike call option saw 5,888 contracts traded, with turnover reaching ₹832.11 lakhs and open interest standing at 4,321 contracts. The 900 strike call option also attracted attention with 4,613 contracts traded, turnover of ₹371.44 lakhs, and open interest of 2,841 contracts.
This concentration of activity near and slightly above the current underlying price suggests a bullish sentiment among traders, who appear to be positioning for potential upside movement in Shriram Finance’s share price before the expiry date. The clustering of open interest around these strikes further indicates that these levels are being closely watched as key price points for the stock.
Stock Performance and Market Context
On the equity front, Shriram Finance outperformed its sector peers on 16 December 2025, registering a 2.33% gain compared to the Non Banking Financial Company (NBFC) sector’s 0.29% and the broader Sensex’s 0.17% returns. The stock touched an intraday high of ₹875.45, reflecting a 3.19% rise during the trading session. This performance is supported by the stock trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained upward momentum.
Investor participation has also shown signs of strengthening, with delivery volumes reaching 39.84 lakh shares on 16 December, marking a 33.71% increase compared to the five-day average delivery volume. Liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹9.44 crore based on 2% of the five-day average traded value, making it accessible for both institutional and retail investors.
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Expiry Patterns and Strike Price Concentration
The expiry date of 30 December 2025 is drawing near, and the concentration of call option activity at strikes of ₹870, ₹880, and ₹900 highlights the market’s focus on these price levels. The underlying value of ₹868.25 places the 870 strike call option almost at-the-money, while the 880 and 900 strikes are slightly out-of-the-money. This distribution suggests that traders are anticipating a potential price rally that could push the stock beyond these thresholds before expiry.
Open interest figures reinforce this view, with the 880 strike call option holding the highest open interest at 4,321 contracts, indicating a strong level of outstanding positions that could influence price dynamics as expiry approaches. The sizeable open interest at the 900 strike also points to expectations of further upside potential, albeit at a more ambitious level.
Sector and Market Capitalisation Context
Shriram Finance operates within the Non Banking Financial Company (NBFC) sector, a segment that has been under close scrutiny due to evolving regulatory and economic conditions. With a market capitalisation of ₹1,59,587 crore, the company is classified as a large-cap stock, which typically attracts steady institutional interest and tends to exhibit relatively stable trading patterns compared to mid- or small-cap peers.
The stock’s recent performance relative to its sector and the broader market underscores its resilience and appeal among investors. The combination of strong derivatives activity and positive price momentum may reflect a growing confidence in the company’s near-term prospects.
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Implications for Investors
The pronounced call option activity in Shriram Finance ahead of the December expiry provides valuable insight into market sentiment and potential price trajectories. The clustering of contracts at strikes near the current market price suggests that traders are positioning for a possible upward move in the stock within the next two weeks.
Investors monitoring Shriram Finance should consider the implications of this derivatives activity alongside the stock’s recent price performance and sector dynamics. The elevated open interest at key strike prices may lead to increased volatility as expiry approaches, particularly if the stock price moves closer to or beyond these levels.
Additionally, the stock’s trading above multiple moving averages and the rise in delivery volumes indicate sustained investor interest, which could support further price stability or gains. However, as with all derivatives-driven movements, it is prudent to remain cautious and consider broader market conditions and company fundamentals.
Conclusion
Shriram Finance’s derivatives market activity ahead of the 30 December 2025 expiry highlights a notable concentration of call option interest at strike prices of ₹870, ₹880, and ₹900. This pattern, combined with the stock’s recent outperformance relative to its sector and the Sensex, points to a cautiously optimistic market stance on the company’s near-term prospects.
As expiry approaches, the interplay between open interest levels and underlying price movements will be critical to watch. Investors and traders alike should keep a close eye on these dynamics to better understand potential price action and market sentiment surrounding Shriram Finance.
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