Tata Motors Ltd. Sees Surge in Active Put Options with 21,430 Contracts at Rs 670 Strike

Tata Motors Ltd., a prominent player in the automobiles industry, has emerged as one of the most active stocks today, particularly in the options market. The company’s put options, set to expire on June 26, 2025, have seen significant trading activity, with 21,430 contracts exchanged at a strike price of Rs 670. This activity has generated a turnover of approximately Rs 657.69 lakhs, while the open interest stands at 3,585 contracts, indicating a robust interest in these options.
Today, Tata Motors is trading at an underlying value of Rs 675.5, reflecting a one-day return of -1.36%, slightly underperforming the sector's return of -1.11% and the Sensex's decline of -0.94%. The stock has experienced a trend reversal, falling after two consecutive days of gains. Additionally, it is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a bearish sentiment in the short to medium term.

Investor participation has also seen a decline, with delivery volume dropping by 7.72% compared to the 5-day average. However, the stock remains liquid enough for trades sized at Rs 24.08 crore, based on 2% of the 5-day average traded value. Overall, Tata Motors continues to navigate a challenging market landscape, reflecting broader trends within the automobile sector.