Tata Motors Sees Surge in Put Option Activity with 5,915 Contracts Traded Today

Tata Motors Ltd., a prominent player in the Automobiles - Passenger Cars industry, has emerged as one of the most active stocks in the options market today, particularly in the put options segment. The company’s underlying stock, TATAMOTORS, is currently valued at Rs 644.75, reflecting a notable decline of 3.09% in one-day returns, underperforming its sector by 2.68%.
Today, a total of 5,915 put contracts were traded, with a turnover of approximately Rs 970.13 lakhs. The put options have a strike price of Rs 650 and are set to expire on May 29, 2025. Open interest stands at 5,568 contracts, indicating a significant level of activity in this segment.

The stock has faced consecutive declines over the past two days, with a total drop of 3.48%. It reached an intraday low of Rs 642.5, and trading volume has been concentrated near this lower price point, as evidenced by the weighted average price. Additionally, the stock's moving averages indicate it is currently above the 20-day average but below the 5-day, 50-day, 100-day, and 200-day averages.

Investor participation has also seen a decline, with delivery volume dropping by 18.08% compared to the five-day average. Despite these challenges, Tata Motors maintains sufficient liquidity for trading, with a market cap of Rs 2,37,465.40 crore, positioning it firmly within the large-cap category. Overall, the activity surrounding Tata Motors' put options reflects a significant moment in the stock's trading landscape.