Vodafone Idea Ltd Sees Surge in Call Option Activity Amid Bullish Sentiment

Robust Call Option Activity Highlights Investor Sentiment

On 30 January 2026, Vodafone Idea Ltd. emerged as one of the most actively traded stocks in the call options segment, with three key strike prices attracting significant volumes. The 11 strike call option led the pack with 9,123 contracts traded, generating a turnover of ₹3,847.19 lakhs and an open interest of 5,469 contracts. This strike price is notably near the underlying stock price of ₹11.20, indicating strong near-the-money bullish bets.

The 12 strike call option followed closely, with 9,651 contracts traded and a turnover of ₹2,138.40 lakhs, alongside an open interest of 3,843. Meanwhile, the 13 strike call option saw 7,312 contracts exchanged, with a turnover of ₹679.41 lakhs and an open interest of 2,242 contracts. These figures collectively underscore a pronounced investor preference for call options expiring on 24 February 2026, suggesting expectations of upward price movement within the next month.

Stock Performance and Technical Indicators

Vodafone Idea Ltd. outperformed its telecom sector by 10.64% on the day, with the stock touching an intraday high of ₹11.34, a 12.84% rise from the previous close. The stock has recorded gains for three consecutive sessions, delivering a cumulative return of 13.84% during this period. Intraday volatility was elevated at 5.19%, reflecting heightened trading activity and investor interest.

Technically, the stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a positive momentum shift. However, delivery volumes have declined by 15.39% compared to the five-day average, indicating some caution among long-term holders despite the short-term bullishness.

Fundamental Context and Market Position

Despite the recent price rally and bullish option activity, Vodafone Idea Ltd. retains a Mojo Score of 33.0 with a Mojo Grade of Sell, upgraded from a previous Strong Sell on 17 October 2025. The company’s market capitalisation stands at ₹1,12,135 crores, categorising it as a mid-cap stock within the telecom services sector. The market cap grade is low at 2, reflecting moderate liquidity and size considerations.

The upgrade in Mojo Grade suggests some improvement in the company’s fundamentals or market perception, but the overall sell rating indicates persistent challenges. Investors should weigh the technical optimism against the fundamental caution before making decisions.

Expiry Patterns and Implications for Investors

The concentration of call option activity around the 24 February 2026 expiry date suggests that traders are positioning for a potential price rally in the near term. The clustering of open interest at strike prices 11, 12, and 13 indicates a range within which investors expect the stock to move. Given the current underlying price of ₹11.20, the 11 and 12 strike calls are near-the-money, while the 13 strike calls represent a more optimistic target.

Such positioning often reflects a bullish outlook, with traders anticipating positive catalysts or improved earnings prospects. However, the relatively high open interest also implies that a significant number of contracts remain outstanding, which could lead to increased volatility as expiry approaches.

Volatility and Liquidity Considerations

Vodafone Idea’s intraday volatility of 5.19% is substantial, especially when compared to the sector’s 0.83% gain and the Sensex’s 0.48% decline on the same day. This heightened volatility is consistent with the surge in option activity and the stock’s wide trading range of ₹1.48 during the session.

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting a trade size of approximately ₹12.59 crores based on 2% of the five-day average. This ensures that investors can enter or exit positions without significant market impact, an important factor given the stock’s mid-cap status.

Balancing Bullish Sentiment with Caution

While the technical indicators and option market activity point to a bullish near-term outlook for Vodafone Idea Ltd., investors should remain cautious given the company’s fundamental challenges and sell-grade rating. The recent upgrade from Strong Sell to Sell by MarketsMOJO reflects some improvement but does not yet signal a full turnaround.

Investors should monitor upcoming earnings reports, regulatory developments, and sector trends closely, as these factors will heavily influence the stock’s trajectory. The telecom sector remains competitive and capital-intensive, which may continue to weigh on Vodafone Idea’s profitability and valuation.

Outlook and Investor Takeaways

Vodafone Idea Ltd.’s recent price rally and heavy call option volumes reflect a growing bullish sentiment among traders, particularly ahead of the February expiry. The stock’s technical strength, supported by gains above key moving averages and strong intraday performance, suggests potential for further upside in the short term.

However, the company’s fundamental rating remains cautious, with a Mojo Grade of Sell and a modest Mojo Score of 33.0. Investors should balance the technical optimism with the underlying business challenges and sector dynamics before committing capital.

For those considering exposure to Vodafone Idea, monitoring option open interest and strike price concentrations can provide valuable insights into market expectations and potential price targets. The current clustering around ₹11 to ₹13 strike prices indicates a probable trading range in the near term, with the possibility of volatility spikes as expiry approaches.

In summary, Vodafone Idea Ltd. presents a complex investment case where short-term technical and options market signals suggest bullishness, but fundamental caution advises prudence. Active monitoring and a balanced approach will be essential for investors navigating this evolving scenario.

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