Robust Call Option Volumes Signal Investor Optimism
The most active call options for TMPV are clustered around strike prices ranging from ₹370 to ₹440, with expiry set for 24 February 2026. The highest volume was recorded at the ₹380 strike, where 9,534 contracts changed hands, generating a turnover of ₹7.22 crores and an open interest of 5,036 contracts. Close behind, the ₹400 strike saw 9,606 contracts traded, with turnover of ₹2.41 crores and open interest standing at 4,941 contracts.
Other notable strikes include ₹390 with 6,037 contracts traded (₹2.70 crores turnover), ₹370 with 5,743 contracts (₹65.01 crores turnover), and ₹440 with 5,291 contracts (₹15.66 lakhs turnover). The substantial turnover at the ₹370 strike, despite it being slightly below the current underlying price, suggests hedging activity or speculative positioning anticipating a rebound.
Underlying Stock Performance and Technical Context
On 6 February 2026, TMPV outperformed its sector by 1.11%, closing with a 0.76% gain compared to the sector’s 0.44% loss and Sensex’s 0.41% decline. The stock opened with a gap down of 2.45%, hitting an intraday low of ₹361 (-3.51%) before recovering to a high of ₹381.8 (+2.04%). The weighted average price indicates that most volume traded near the day’s low, signalling some selling pressure during the session.
Technically, TMPV’s price remains above its 5-day, 20-day, and 50-day moving averages but below the 100-day and 200-day averages, reflecting a mixed trend with potential resistance at higher levels. Delivery volumes have declined by 6.7% against the 5-day average, indicating falling investor participation despite the active options market.
Mojo Score and Market Capitalisation Insights
Tata Motors Passenger Vehicles Ltd holds a large-cap status with a market capitalisation of ₹1,37,774 crores. However, its current Mojo Score stands at 41.0, graded as a Sell, downgraded from Hold on 4 November 2024. The market cap grade is 1, reflecting its sizeable presence but tempered by recent fundamental and momentum assessments.
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Expiry Patterns and Strike Price Concentration
The clustering of call option activity around the ₹380 to ₹400 strikes, both slightly above the current market price, suggests that traders are positioning for a moderate upside move in the near term. The open interest figures reinforce this view, with nearly 5,000 contracts outstanding at these strikes, indicating sustained interest and potential support for these levels.
Interestingly, the ₹370 strike, which is in-the-money given the underlying price of ₹378.85, also shows heavy turnover and open interest, possibly reflecting a mix of protective calls and speculative bets. The ₹440 strike, significantly out-of-the-money, has lower turnover and open interest but still notable activity, hinting at some bullish bets on a strong rally beyond current resistance levels.
Investor Sentiment and Market Implications
The active call option trading in TMPV aligns with a cautiously optimistic investor sentiment. While the stock’s fundamental mojo score remains weak, the options market reveals a willingness to speculate on upside potential, possibly driven by expectations of upcoming product launches, favourable policy developments, or sectoral tailwinds in the automobile industry.
However, the mixed technical signals and falling delivery volumes caution against overexuberance. Investors should weigh the risk of volatility around the February expiry, especially given the stock’s recent gap down and intraday price swings.
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Comparative Sector and Market Performance
Within the automobile sector, TMPV’s outperformance on the day contrasts with the sector’s overall decline of 0.44% and the Sensex’s 0.41% drop. This relative strength may be attracting option traders seeking to capitalise on potential momentum shifts. However, the stock’s current Mojo Grade of Sell suggests caution, as fundamental and technical factors have not yet aligned to support a sustained rally.
Investors should monitor upcoming earnings releases, policy announcements, and global automotive trends that could influence TMPV’s trajectory. The options market activity provides a useful barometer of sentiment but should be considered alongside broader market and company-specific developments.
Outlook and Strategic Considerations
Given the heavy call option volumes and open interest at strikes above the current price, there is clear bullish positioning in TMPV ahead of the 24 February expiry. Traders appear to be anticipating a price recovery or breakout, possibly driven by positive catalysts in the near term.
Nonetheless, the downgrade in Mojo Grade from Hold to Sell and the modest Mojo Score of 41.0 underline the need for prudence. Investors should consider hedging strategies or selective exposure, especially given the stock’s mixed technical signals and recent volatility.
Overall, the options market activity in Tata Motors Passenger Vehicles Ltd offers valuable insights into investor expectations and risk appetite, highlighting a nuanced picture of optimism tempered by caution.
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