Put Option Activity Highlights
On 15 December 2025, Vodafone Idea witnessed a significant volume of put option contracts traded, with 4,631 contracts changing hands at the ₹10 strike price for the expiry date of 30 December 2025. This activity generated a turnover of approximately ₹297.9 lakhs, accompanied by an open interest of 4,025 contracts. The underlying stock price stood at ₹11.41, indicating that the strike price is positioned slightly below the current market value, a common feature in protective or speculative bearish strategies.
Market Context and Stock Performance
Despite the heavy put option activity, Vodafone Idea's stock price recorded a modest gain of 0.62% on the day, underperforming its sector benchmark, which rose by 1.01%. The broader Sensex index declined by 0.46%, placing Vodafone Idea's performance in a mixed market context. The stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a technical uptrend in the short to long term.
Investor participation has shown a marked increase, with delivery volume reaching 29.8 crore shares on 15 December, reflecting a 28.35% rise compared to the five-day average delivery volume. This heightened activity points to growing interest and liquidity in the stock, which is further supported by its ability to handle trade sizes of up to ₹24.64 crore based on 2% of the five-day average traded value.
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Interpreting the Put Option Surge
The concentration of put options at the ₹10 strike price, close to the current market price, suggests that investors are either positioning for a potential downside or seeking protection against adverse price movements. Put options serve as a hedge for existing long positions or as a speculative tool to capitalise on expected declines.
Given Vodafone Idea's market capitalisation of approximately ₹1,22,103 crore, it remains a mid-cap stock with substantial trading volumes and liquidity. The telecom sector, known for its volatility and regulatory challenges, often sees such option activity as investors navigate uncertainties related to competitive pressures, debt servicing, and evolving market dynamics.
Expiry Patterns and Investor Sentiment
The expiry date of 30 December 2025 for these put options is noteworthy, as it falls near the end of the calendar year, a period often associated with portfolio rebalancing and strategic positioning ahead of the new fiscal year. The open interest of 4,025 contracts indicates that a significant number of investors have maintained their bearish or hedging positions rather than closing them out, reflecting sustained caution.
While the stock's trading above multiple moving averages might imply underlying strength, the active put option market reveals a nuanced investor outlook. This divergence between technical indicators and options market behaviour underscores the complexity of market sentiment surrounding Vodafone Idea.
Sector and Market Comparison
Within the Telecom - Services sector, Vodafone Idea's one-day return of 0.62% trails the sector's 1.01% gain, suggesting relative underperformance. The broader market, represented by the Sensex, declined by 0.46%, positioning Vodafone Idea's performance as somewhat resilient in a down market. This mixed performance may contribute to the hedging activity observed in the options market.
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Implications for Investors
For investors and traders, the heavy put option activity in Vodafone Idea signals the importance of closely monitoring the stock’s price movements and market developments. The strike price of ₹10, slightly below the current market price, may act as a psychological support level, with option holders potentially exercising or closing positions depending on price action as expiry approaches.
Additionally, the liquidity profile of Vodafone Idea supports active trading strategies, allowing market participants to enter or exit positions with relative ease. The rising delivery volumes further indicate growing investor engagement, which could translate into increased volatility in the near term.
Conclusion
Vodafone Idea's prominence in put option trading, particularly with contracts expiring at the end of December 2025, reflects a cautious or defensive stance among market participants. While the stock maintains a technical uptrend, the options market reveals a layer of complexity in investor sentiment, balancing optimism with protective measures. As the expiry date approaches, the interplay between price movements and option positions will be critical to watch for insights into the stock’s near-term trajectory.
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