Robust Call Option Activity Highlights Investor Optimism
The most active call options for Tata Steel Ltd are concentrated on the 24 February 2026 expiry, with strike prices at Rs. 205 and Rs. 210 drawing the highest volumes. Specifically, the Rs. 210 strike call option saw 16,055 contracts traded, generating a turnover of approximately Rs. 3717.54 lakhs and an open interest of 2,865 contracts. Meanwhile, the Rs. 205 strike call option recorded 8,680 contracts traded with a turnover of Rs. 2845.30 lakhs and open interest of 1,196 contracts.
These figures underscore a pronounced bullish positioning, as investors are willing to pay premiums for the right to buy shares above the current underlying value of Rs. 208.87. The concentration of open interest at these strike prices suggests expectations of further price appreciation in the coming weeks, particularly ahead of the February expiry.
Price Performance and Technical Strength Reinforce Positive Outlook
Tata Steel’s recent price action supports the optimism reflected in the options market. The stock has gained 5.74% over the past two consecutive trading sessions, outperforming its sector by 1.7% and the broader Sensex by 2.81%. On 10 February 2026, the stock touched an intraday high of Rs. 211.1, marking a fresh 52-week peak.
Technically, Tata Steel is trading above all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained upward momentum. The rising delivery volume of 2.18 crore shares on 9 February, an 85.68% increase over the five-day average, further indicates growing investor participation and confidence in the stock’s prospects.
Perfect timing to enter! This Small Cap from IT - Software just turned profitable with growth momentum clearly building up. Get in before the broader market notices!
- - New profitability achieved
- - Growth momentum building
- - Under-the-radar entry
Fundamental Strength and Market Capitalisation
Tata Steel Ltd operates within the ferrous metals industry and is classified as a large-cap stock with a market capitalisation of Rs. 2,56,224 crore. The company’s Mojo Score currently stands at 75.0, reflecting a Buy rating, a slight moderation from its previous Strong Buy grade as of 1 January 2026. This adjustment indicates a more measured but still positive outlook based on recent financial and operational metrics.
The stock’s market cap grade is rated 1, denoting its status as a heavyweight in the sector. This large-cap stature combined with steady fundamentals provides a solid foundation for the bullish sentiment observed in the options market.
Liquidity and Trading Dynamics Support Active Participation
Liquidity remains robust for Tata Steel, with the stock’s traded value comfortably supporting sizeable trade sizes. Based on 2% of the five-day average traded value, the stock can accommodate trade sizes of approximately Rs. 13.61 crore, ensuring that institutional and retail investors can execute sizeable positions without significant market impact.
The active call option turnover, exceeding Rs. 6,500 lakhs combined for the two most traded strikes, further highlights the stock’s appeal among derivatives traders. This liquidity in both the cash and options segments facilitates efficient price discovery and risk management.
Expiry Patterns and Strike Price Concentration
The expiry date of 24 February 2026 is attracting the bulk of call option activity, suggesting that investors are positioning for potential catalysts or earnings announcements expected around this timeframe. The clustering of open interest at Rs. 205 and Rs. 210 strikes, both above the current market price, indicates a consensus expectation of upward price movement beyond these levels within the next two weeks.
Such positioning is typical of bullish traders who anticipate the stock to breach these strike prices, enabling them to exercise options profitably or sell them at a premium. The open interest figures also imply that many contracts remain outstanding, which could lead to increased volatility as expiry approaches.
Tata Steel Ltd caught your attention? Explore our comprehensive research report with in-depth analysis of this large-cap Ferrous Metals stock – fundamentals, valuations, financials, and technical outlook!
- - Comprehensive research report
- - In-depth large-cap analysis
- - Valuation assessment included
Balancing Bullishness with Market Realities
While the surge in call option activity and recent price gains point to a positive near-term outlook, investors should remain mindful of broader market conditions and sector-specific risks. The ferrous metals industry is sensitive to global commodity cycles, trade policies, and demand fluctuations from key sectors such as construction and automotive.
Moreover, the slight downgrade from Strong Buy to Buy in the Mojo Grade suggests that while fundamentals remain sound, some caution is warranted. Investors should monitor upcoming quarterly results and macroeconomic indicators that could influence Tata Steel’s performance and market sentiment.
Conclusion: Strategic Positioning in Tata Steel Options
The concentrated call option volumes at strike prices Rs. 205 and Rs. 210 for the 24 February expiry reflect a clear bullish consensus among traders anticipating further upside in Tata Steel Ltd’s share price. Supported by strong technical indicators, rising delivery volumes, and a solid fundamental base, the stock is well positioned for continued gains in the near term.
Market participants looking to capitalise on this momentum should consider the liquidity and volatility dynamics inherent in the options market, while also keeping an eye on sectoral developments and company-specific news that could impact price trajectories.
Investors seeking detailed insights and comprehensive analysis on Tata Steel Ltd’s prospects can benefit from expert research and valuation assessments to inform their strategic decisions.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
