Call Option Trading Highlights
On 16 December 2025, Supreme Industries Ltd witnessed the most active call option contracts at the strike price of Rs 3,400, expiring on 30 December 2025. A total of 4,990 contracts were traded, generating a turnover of approximately Rs 440.2 lakhs. The open interest for these call options stands at 1,225 contracts, indicating sustained interest from market participants ahead of the expiry date.
The underlying stock price at the time was Rs 3,366.9, just below the strike price, suggesting that traders are positioning for a potential upward move in the near term. The concentration of activity at this strike price and expiry date points to a strategic focus on the stock’s performance in the final fortnight of December.
Stock Performance and Market Context
Supreme Industries operates within the Plastic Products - Industrial sector and holds a market capitalisation of Rs 41,711 crore, categorising it as a mid-cap stock. On the trading day of 16 December, the stock outperformed its sector by 2.26%, registering a gain of 2.92% for the day. This performance contrasts with the broader Sensex, which declined by 0.37% on the same day, highlighting the stock’s relative strength.
The stock has recorded gains over the past two consecutive days, delivering a cumulative return of 4.13% during this period. Intraday, Supreme Industries touched a high of Rs 3,359.1, reflecting a 2.66% increase from the previous close. These price movements have coincided with rising investor participation, as evidenced by a delivery volume of 8.05 lakh shares on 15 December, which is 590% higher than the five-day average delivery volume.
Technical Indicators and Liquidity
From a technical perspective, the stock’s price currently trades above its five-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This positioning suggests short-term momentum with room for further technical confirmation in the medium term.
Liquidity conditions for Supreme Industries are favourable, with the stock’s traded value representing approximately 2% of its five-day average traded value. This liquidity supports trade sizes of up to Rs 2.21 crore without significant market impact, facilitating active participation from institutional and retail investors alike.
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Investor Sentiment and Market Positioning
The surge in call option activity at the Rs 3,400 strike price suggests a bullish sentiment among traders, who appear to be anticipating a price rally beyond this level before the December expiry. The open interest data supports this view, as the accumulation of contracts indicates that investors are maintaining or building positions rather than closing them out.
Such positioning often reflects expectations of positive catalysts or favourable market conditions in the near term. Given the stock’s recent outperformance relative to its sector and the broader market, this optimism is grounded in observable price action and volume trends.
Sectoral and Market Comparisons
Within the Plastic Products - Industrial sector, Supreme Industries stands out for its recent price resilience and trading activity. While the sector recorded a modest 0.45% gain on the day, Supreme Industries’ 2.97% return underscores its relative strength. This divergence may attract further attention from investors seeking exposure to outperforming mid-cap stocks in the industrial materials space.
Moreover, the stock’s market capitalisation of Rs 41,711 crore places it in a competitive position among peers, balancing growth potential with established market presence. This mid-cap status often appeals to investors looking for a blend of stability and upside opportunity.
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Outlook and Considerations for Investors
As the 30 December expiry approaches, the concentration of call option activity at the Rs 3,400 strike price will be a key focus for market watchers. Should the stock price move above this level, it may trigger further option-related activity and potentially amplify price movements due to hedging and speculative flows.
Investors should also monitor broader market conditions and sectoral trends, as these will influence Supreme Industries’ trajectory in the coming weeks. The stock’s recent gains and elevated delivery volumes suggest increased investor interest, but the technical picture remains mixed with longer-term moving averages still above the current price.
Overall, the data points to a market environment where Supreme Industries is attracting bullish positioning through call options, reflecting expectations of positive near-term performance. However, prudent investors will weigh these signals alongside fundamental and technical factors before making allocation decisions.
Summary
Supreme Industries has emerged as a focal point in the options market with substantial call option trading activity centred on the Rs 3,400 strike price for the December expiry. The stock’s recent outperformance relative to its sector and the Sensex, combined with rising delivery volumes and liquidity, underscores growing investor engagement. While technical indicators present a mixed picture, the prevailing sentiment in the options market suggests optimism about the stock’s near-term prospects.
Market participants should continue to monitor Supreme Industries’ price action and option market dynamics as the expiry date approaches, considering both the opportunities and risks inherent in such positioning.
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