Voltas Ltd Sees Surge in Call Option Activity Ahead of January Expiry

Robust Call Option Volumes Signal Investor Interest

On 23 January 2026, Voltas Ltd. (NSE: VOLTAS) emerged as one of the most actively traded stocks in the call options segment, with significant volumes concentrated around strike prices close to the current underlying value of ₹1,345.30. The most heavily traded call options were at the ₹1,360 strike, with 8,023 contracts exchanged, generating a turnover of approximately ₹393.53 lakhs and an open interest of 1,112 contracts. This was closely followed by the ₹1,380 strike, which saw 7,862 contracts traded, turnover of ₹220.82 lakhs, and the highest open interest of 1,922 contracts, indicating strong speculative interest at this level.

Additionally, the ₹1,340 strike call options recorded the highest number of contracts traded at 6,255, with a substantial turnover of ₹418.46 lakhs, despite a relatively lower open interest of 512 contracts. The ₹1,400 strike also attracted attention with 4,907 contracts traded and a turnover of ₹74.71 lakhs. These figures collectively point to a concentrated bullish sentiment, with traders positioning for a potential upward move in the stock price before the expiry date.

Underlying Stock Performance and Market Context

Voltas Ltd. has outperformed its sector peers on the day, registering a 3.99% gain compared to the Electronics & Appliances sector’s 2.62% rise and the Sensex’s marginal 0.04% increase. The stock has been on a two-day winning streak, delivering a cumulative return of 5.06%, with an intraday high touching ₹1,363, a 5.37% rise from the previous close. This performance is notable given the stock’s recent downgrade from a Hold to a Sell rating on 11 November 2025, as per MarketsMOJO’s assessment, which assigned it a Mojo Score of 31.0 and a Market Cap Grade of 2, reflecting mid-cap status with moderate liquidity.

Voltas’ price currently trades above its 200-day moving average but remains below its 5-day, 20-day, 50-day, and 100-day moving averages, suggesting a mixed technical picture. The Air Conditioners segment, a key part of Voltas’ business, has gained 3.05% on the day, reinforcing sectoral tailwinds. Investor participation has also increased, with delivery volumes rising by 28.27% to 3.26 lakh shares on 22 January, signalling growing conviction among market participants.

Expiry Patterns and Strike Price Concentration

The concentration of call option activity around the ₹1,340 to ₹1,400 strike prices for the 27 January 2026 expiry suggests that traders are positioning for a near-term rally. The underlying stock price of ₹1,345.30 sits comfortably within this range, indicating that market participants expect the stock to either sustain or breach these levels before expiry. The open interest data further supports this view, with the highest open interest at the ₹1,380 strike, implying that many traders are holding positions betting on a price rise beyond this level.

Such clustering of open interest and volume at these strikes often precedes significant price movements, as option writers and buyers adjust their hedges and speculative bets. The sizeable turnover figures, especially at the ₹1,340 and ₹1,360 strikes, reflect active trading and liquidity, which is crucial for efficient price discovery and risk management in the options market.

Mojo Grade Downgrade and Its Implications

Despite the bullish options activity, MarketsMOJO downgraded Voltas Ltd.’s Mojo Grade from Hold to Sell on 11 November 2025, citing concerns over valuation and quality metrics. The current Mojo Score of 31.0 is relatively low, indicating weak fundamentals and a cautious outlook. The Market Cap Grade of 2 reflects mid-cap status, which often entails higher volatility and risk compared to large-cap peers.

This downgrade suggests that while short-term speculative interest is high, longer-term investors may be wary of the stock’s fundamentals. The mixed technical indicators, with the stock trading below several moving averages except the 200-day, reinforce this cautious stance. Investors should weigh the short-term bullish momentum against the fundamental challenges highlighted by the downgrade.

Investor Takeaway: Balancing Momentum with Fundamentals

The surge in call option volumes and open interest at strike prices near and above the current market price of Voltas Ltd. indicates a strong bullish sentiment among traders anticipating a price rally before the 27 January expiry. The stock’s recent outperformance relative to its sector and the Sensex, coupled with rising delivery volumes, supports this near-term optimism.

However, the downgrade in Mojo Grade to Sell and the stock’s mixed technical signals counsel caution. Investors should consider the fundamental challenges and valuation concerns highlighted by MarketsMOJO before committing to long-term positions. The mid-cap nature of Voltas also implies greater susceptibility to market volatility, which can amplify both gains and losses.

For traders focused on options, the liquidity and active trading at multiple strike prices offer opportunities to implement strategies that capitalise on expected volatility and directional moves. Meanwhile, long-term investors may prefer to monitor the stock’s fundamental developments and sectoral trends before increasing exposure.

Sectoral and Market Context

The Electronics & Appliances sector, particularly the Air Conditioners segment, has shown resilience with a 3.05% gain on the day, providing a supportive backdrop for Voltas. The stock’s ability to outperform its sector by 1.83% on the day underscores its relative strength. However, broader market conditions remain subdued, with the Sensex barely moving, highlighting the importance of stock-specific catalysts in driving price action.

Given the stock’s liquidity profile, with a trading capacity of approximately ₹1.8 crore based on 2% of the five-day average traded value, Voltas remains accessible for institutional and retail investors alike. This liquidity is a positive factor for those looking to enter or exit positions without significant price impact.

Conclusion

Voltas Ltd.’s active call option market and recent price gains reflect a bullish near-term outlook among traders, despite fundamental concerns and a recent downgrade. The concentration of option activity around key strike prices near the current market value suggests anticipation of a price rally before the 27 January 2026 expiry. Investors should balance this momentum with the stock’s fundamental challenges and sector dynamics when making investment decisions.

Careful monitoring of open interest trends, price movements, and sector performance will be essential in navigating the evolving landscape for Voltas Ltd. as it approaches the options expiry date.

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