Siemens Ltd Sees Heavy Put Option Activity Ahead of Expiry Amid Bearish Sentiment

Robust Stock Performance Contrasted by Put Option Surge

On 19 February 2026, Siemens Ltd. (SIEMENS) closed at ₹3,271, just 4.04% shy of its 52-week high of ₹3,409. The stock outperformed its sector, Capital Goods, which gained 2.14%, with Siemens delivering a 5.78% return compared to the sector’s 2.07% and the Sensex’s modest 0.42% rise. Intraday, the stock touched a high of ₹3,295, marking a 6.05% gain for the day.

Technically, Siemens is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a strong upward momentum. However, investor participation has waned, with delivery volumes falling by 46.62% against the five-day average, signalling some hesitation among long-term holders.

Put Option Activity Highlights Bearish Hedging

Contrasting the bullish price action, the options market reveals a notable increase in put option contracts. The most active put option for Siemens is at the ₹3,200 strike price, expiring on 24 February 2026. On this expiry date, a total of 10,360 contracts were traded, generating a turnover of ₹521.24 lakhs. Open interest stands at 1,984 contracts, underscoring sustained interest in downside protection or speculative bearish bets.

The underlying stock price of ₹3,271 is currently trading above the ₹3,200 strike, but the heavy put volume suggests investors are positioning for a potential correction or seeking to hedge existing long positions. The weighted average price of traded options skewed closer to the lower price range, indicating aggressive put buying near the strike price.

Mojo Score and Market Sentiment

Siemens Ltd. carries a Mojo Score of 42.0, categorised as a Sell, a downgrade from its previous Hold rating as of 29 December 2025. The Market Cap Grade is 1, reflecting its status as a large-cap stock with a market capitalisation of ₹1,12,997 crores. This downgrade aligns with the increased put option activity, signalling a shift in market sentiment towards caution.

Expiry Patterns and Investor Strategies

The 24 February 2026 expiry is attracting significant put option interest, which is typical as investors seek to hedge positions ahead of quarterly results or macroeconomic announcements. The ₹3,200 strike price is a psychologically important level, just below the current market price, offering a buffer zone for downside protection.

Open interest data suggests that many investors are either buying puts outright as a bearish bet or employing protective puts to guard against a sudden reversal. This activity is consistent with a cautious stance despite the stock’s recent outperformance.

Sector and Market Context

Within the Heavy Electrical Equipment sector, Siemens Ltd. remains a dominant player. However, the sector’s 2.14% gain on the day was overshadowed by Siemens’ sharper rise, which may have prompted profit-taking or hedging among institutional investors. The broader market’s muted 0.42% Sensex gain further emphasises the selective nature of investor enthusiasm.

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting transactions up to ₹1.76 crores based on 2% of the five-day average. This liquidity facilitates active options trading and allows investors to implement complex hedging strategies efficiently.

Implications for Investors

For investors, the heavy put option activity at the ₹3,200 strike price signals a need for caution. While the stock’s technicals remain strong, the options market is pricing in potential volatility or a pullback. Investors holding Siemens shares may consider protective puts or closely monitor open interest changes to gauge shifts in sentiment.

Conversely, traders looking for opportunities might explore short-term bearish strategies or wait for confirmation of a trend reversal before committing to long positions. The downgrade to a Sell rating by MarketsMOJO further supports a prudent approach.

Conclusion: Balancing Bullish Momentum with Bearish Hedging

Siemens Ltd. presents a complex picture for investors as it balances strong price momentum with significant bearish hedging in the options market. The stock’s proximity to its 52-week high and outperformance of the sector and Sensex reflect underlying strength. However, the surge in put option volume and open interest at the ₹3,200 strike price ahead of the 24 February expiry highlights investor caution and the potential for near-term volatility.

Investors should weigh these factors carefully, considering both the technical strength and the protective positioning evident in the options market. The downgrade to a Sell rating by MarketsMOJO reinforces the need for vigilance and disciplined risk management in portfolios containing Siemens Ltd.

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