Tata Motors Ltd. Sees Surge in Put Options with 10,700 Contracts at Rs 700 Strike

Tata Motors Ltd. has emerged as one of the most active stocks in the options market today, particularly in the put options segment. The company, a key player in the automobiles industry, has seen significant activity with 10,700 put contracts traded at a strike price of Rs 700, resulting in a turnover of approximately Rs 345.51 lakhs. The underlying value of Tata Motors stands at Rs 711.5, indicating a close proximity to the strike price.
As of today, the stock's performance aligns with the sector, reflecting a one-day return of -1.93%, slightly underperforming the sector's return of -1.81% and the Sensex's return of -1.07%. The stock's moving averages show that it is currently higher than the 20-day, 50-day, and 100-day averages, yet lower than the 5-day and 200-day averages, suggesting mixed momentum.

Open interest for the put options is recorded at 6,151, indicating a notable level of interest among traders. However, there has been a decline in investor participation, with delivery volume dropping by 59.88% compared to the 5-day average. Despite this, the stock remains liquid enough for trading, with a liquidity level based on 2% of the 5-day average traded value sufficient for a trade size of Rs 9.99 crore.

In summary, Tata Motors' put options activity today highlights a significant engagement in the market, reflecting current trading dynamics and investor behavior without indicating future trends.