F&O Insights for 08/04/25 - Unusual Options Activity

Disclaimer: This content is for educational purposes only, based on data as of 12:15 PM IST on April 8, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.

Welcome to today’s F&O Insights! We’re breaking down Futures & Options (F&O) data to help you spot market trends, whether you’re just starting or sharpening your skills.

Section 1: Understanding Stock Activity Through OI Changes

Here’s what’s moving in key stocks based on price changes and Open Interest (OI) shifts.

Underlying Price Change Call OI Chg Put OI Chg Call Explanation Put Explanation
BAJFINANCE 8,797.95 2.68% 297 1191 Long Buildup Long Buildup
M&M 2,511.00 0.77% 3497 -61 Long Buildup Short Covering
INFY 1,444.00 3.38% 569 -144 Long Buildup Short Covering
RELIANCE 1,181.95 1.39% 6013 1574 Long Buildup Long Buildup
SBIN 766.65 2.64% 2081 1526 Long Buildup Long Buildup
TITAN 3,147.85 4.16% 1868 1937 Long Buildup Long Buildup
TCS 3,323.00 1.50% 3902 1853 Long Buildup Long Buildup

What Do These Terms Mean?

  • Long Buildup: OI rises with price moving favorably—up for calls (bullish) or down for puts (bearish). Traders are buying options, expecting that direction.

  • Short Buildup: OI rises, but price moves against buyers—down for calls (bearish) or up for puts (bullish). Suggests option selling.

  • Short Covering: OI drops with price rising (for calls) or falling (for puts). Short sellers buy back options, fueling the move.

  • Long Unwinding: OI drops with price falling (for calls) or rising (for puts). Long holders exit, signaling doubt.

Quick Take: Long Buildup with Short Covering (e.g., M&M, INFY) often signals strong bullish momentum—watch for breakouts!

Section 2: Spotlight on High-Activity Options

These options show significant trading volume relative to OI, highlighting strikes traders are targeting.

Contract Volume/OI Ratio Explanation VOLUME OI IV
BAJFINANCE 8800 CE 24 Apr 2025 4.82 Long Buildup (Bullish) 10262 2129 30.43
BAJFINANCE 8700 PE 24 Apr 2025 2.65 Short Buildup (Bullish) 3838 1446 35.46
INFY 1440 CE 24 Apr 2025 3.21 Long Buildup (Bullish) 5051 1574 41.05
INFY 1420 PE 24 Apr 2025 2.65 Short Buildup (Bullish) 2818 1063 44.03
M&M 2550 CE 24 Apr 2025 4.85 Short Buildup (Bearish) 5382 1109 40.07
M&M 2450 PE 24 Apr 2025 2.92 Short Buildup (Bullish) 3271 1121 42.87
RELIANCE 1170 CE 24 Apr 2025 3.52 Short Buildup (Bearish) 4978 1413 29.28
RELIANCE 1170 PE 24 Apr 2025 3.48 Short Buildup (Bullish) 4714 1355 33.06
SBIN 760 PE 24 Apr 2025 3.28 Short Buildup (Bullish) 7670 2337 30.89
SBIN 770 CE 24 Apr 2025 2.76 Long Buildup (Bullish) 9444 3420 29.24
TCS 3300 CE 24 Apr 2025 3.33 Short Buildup (Bearish) 8616 2591 34.27
TCS 3400 CE 24 Apr 2025 2.02 Short Buildup (Bearish) 6334 3131 34.01
TITAN 3200 CE 24 Apr 2025 5.64 Long Buildup (Bullish) 19937 3536 29.47
TITAN 3100 PE 24 Apr 2025 4.07 Short Buildup (Bullish) 8418 2067 31.85

How to Understand Volume/OI Ratio

  • What It Is: Compares today’s trading volume to existing OI. A higher ratio means more new trades.
  • What It Suggests:
    • Above 2: Notable interest—traders see this strike as key (e.g., TCS’s 3.33 at 3300 CE).
    • Above 5: Strong activity, often tied to big expectations (e.g., TITAN’s 5.64 at 3200 CE).
    • Below 1: Quiet—positions are likely being held or closed.
  • Why It Matters: High ratios highlight “hot” strikes—potential support or resistance zones.

Final Thoughts

F&O data lights the way—OI shifts show bullish momentum, and high Volume/OI Ratios (like TITAN’s 5.64) spotlight key action. Finance, IT, and consumer goods are driving gains, with mixed signals elsewhere. Pair these clues with charts to catch the upswing!

Happy trading—see you next time!

Disclaimer: This content is for educational purposes only, based on data as of 12:15 PM IST on April 8, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.