UltraTech Cement Sees Robust Call Option Activity Ahead of December Expiry

Call Option Trading Overview

Data from the derivatives segment highlights UltraTech Cement Ltd (ULTRACEMCO) as one of the most actively traded stocks in call options for the upcoming expiry. The underlying stock closed at ₹11,741 on the day of analysis, with three strike prices attracting the bulk of call option contracts: ₹11,600, ₹11,700, and ₹11,800. These strikes are positioned close to the prevailing market price, indicating a focus on near-the-money options.

The strike price of ₹11,800 recorded the highest number of contracts traded, totalling 20,334 contracts, followed by ₹11,700 with 13,395 contracts and ₹11,600 with 10,837 contracts. This volume distribution suggests a tilt towards bullish positioning, as traders appear to be wagering on the stock moving above these levels by expiry.

Turnover figures for these strikes are substantial, with ₹11,600 strike options generating approximately ₹73.08 crores, ₹11,700 strikes around ₹68.52 crores, and ₹11,800 strikes close to ₹64.64 crores. Open interest data further supports this trend, with the ₹11,800 strike showing the highest open interest at 3,096 contracts, followed by ₹11,700 at 2,333 and ₹11,600 at 1,328 contracts. This accumulation of open interest near the upper strike prices reflects sustained trader interest and potential positioning for a price rise.

Stock Price Performance and Market Context

UltraTech Cement's stock has demonstrated resilience in recent sessions, outperforming its sector by 0.57% on the day under review. The stock has recorded gains over the last three consecutive trading days, delivering a cumulative return of 2.42% during this period. This short-term momentum is supported by the stock trading above its 5-day and 20-day moving averages, although it remains below its longer-term averages such as the 50-day, 100-day, and 200-day moving averages. This positioning suggests that while short-term sentiment is positive, the stock is still navigating broader resistance levels.

Investor participation, as measured by delivery volume, has shown a slight decline with a 0.5% reduction against the 5-day average delivery volume, standing at 1.1 lakh shares on 22 December. Despite this, liquidity remains adequate, with the stock's traded value supporting trade sizes up to ₹3.86 crores based on 2% of the 5-day average traded value. This liquidity profile facilitates active trading and option market participation.

Expiry Patterns and Strike Price Concentration

The expiry date of 30 December 2025 is attracting concentrated option activity, with traders focusing on call options that are close to the current stock price. The clustering of open interest and turnover around the ₹11,700 and ₹11,800 strikes indicates that market participants are positioning for a potential upward move in UltraTech Cement’s share price before the end of the year.

Such activity often reflects expectations of positive catalysts or seasonal demand in the cement sector, which could influence the stock’s trajectory. The cement industry, known for its sensitivity to infrastructure spending and economic cycles, may be benefiting from recent government initiatives or improving demand trends, factors that traders could be factoring into their option strategies.

Moreover, the open interest build-up at higher strike prices suggests that traders are not only speculating on price appreciation but also possibly hedging existing positions or engaging in spread strategies to capitalise on volatility ahead of expiry.

Sector and Market Comparison

UltraTech Cement’s performance on the day outpaced the broader Cement & Cement Products sector, which recorded a 1.33% return, while the Sensex index showed a marginal gain of 0.02%. This relative strength in the stock aligns with the observed option market activity, signalling a degree of confidence among investors and traders in UltraTech Cement’s near-term prospects.

With a market capitalisation of approximately ₹3,41,828 crores, UltraTech Cement remains a dominant player in the large-cap segment of the cement industry. Its liquidity and trading volumes support active participation from institutional and retail investors alike, which is reflected in the vibrant options market.

Investor Sentiment and Outlook

The concentrated call option activity near the current price level suggests a cautiously optimistic sentiment among market participants. Traders appear to be positioning for a scenario where UltraTech Cement’s stock price could breach the ₹11,800 level by the expiry date, potentially driven by sectoral tailwinds or company-specific developments.

However, the stock’s position below its longer-term moving averages indicates that broader resistance levels remain in place, which could temper upside momentum. The slight decline in delivery volumes also points to a measured approach by investors, balancing optimism with caution.

Overall, the derivatives market activity provides valuable insight into the expectations and risk appetite of traders, complementing the stock’s price action and fundamental backdrop.

Conclusion

UltraTech Cement’s active call option trading ahead of the 30 December 2025 expiry highlights a significant interest in near-the-money strikes, reflecting a market view that the stock may experience upward movement in the short term. The combination of strong turnover, rising open interest at higher strikes, and recent price gains relative to the sector underscores a nuanced bullish positioning among traders.

Investors and market watchers should continue to monitor option market dynamics alongside price and volume trends to gauge evolving sentiment and potential catalysts in the cement sector. The liquidity and market cap of UltraTech Cement support sustained trading activity, making it a key stock to watch in the large-cap cement space as the year draws to a close.

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