Tata Motors Sees Surge in Active Put Options: 15,860 Contracts at Rs 700 Strike

Tata Motors Ltd., a prominent player in the Automobiles - Passenger Cars sector, has emerged as one of the most active stocks today, particularly in the options market. The company’s put options, set to expire on May 29, 2025, have seen significant trading activity. Notably, the put option with a strike price of 720 recorded 10,111 contracts traded, resulting in a turnover of approximately Rs 1,346.33 lakhs, while the 700 strike price put option saw 15,860 contracts traded with a turnover of around Rs 1,382.60 lakhs.
The underlying value of Tata Motors is currently at Rs 719.7, reflecting a slight decline of 0.28% in one-day returns, underperforming the sector, which fell by 0.38%. The stock has recently experienced a trend reversal after four consecutive days of gains. Despite being above the 5-day, 20-day, 50-day, and 100-day moving averages, it remains below the 200-day moving average, indicating mixed performance trends.

Investor participation has also seen a decline, with delivery volumes dropping by 6.17% compared to the 5-day average. However, the stock maintains sufficient liquidity for trades sized at Rs 2.62 crore, based on 2% of the 5-day average traded value. Overall, Tata Motors continues to navigate a complex market landscape, marked by notable activity in its put options.