F&O Insights for 18/03/25: Unusual Options Activity

Disclaimer: This content is for educational purposes only, based on data as of 1 PM IST on March 18, 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 newsletter! Whether you’re new to trading or building your skills, this newsletter breaks down Futures & Options (F&O) data to help you understand market sentiment.

Let’s dive in and make sense of the numbers!

Understanding Stock Activity Through OI Changes

First, let’s look at how traders are positioning themselves in select stocks.

Underlying Price Change Call OI Chg Put OI Chg Call Explanation Put Explanation
ADANIENT 2299.2 2.07% -471 -399 Short Covering Short Covering
AXISBANK 1040.45 0.60% 1310 -510 Long Buildup Short Covering
BAJFINANCE 8669.20 1.03% 585 733 Long Buildup Long Buildup
BHARTIARTL 1269.60 -0.56% 164 -747 Long Buildup Short Covering
HCLTECH 1555.2 0.67% -298 -211 Short Covering Short Covering
HDFCBANK 1729.85 1.14% -3972 935 Short Covering Long Buildup
HINDUNILVR 2205.55 1.58% -2177 -482 Short Covering Short Covering
ICICIBANK 1296.95 2.15% 3314 4009 Long Buildup Long Buildup
INFY 1597.05 0.45% -4642 -1061 Short Covering Short Covering
ITC 409.4 0.33% -755 268 Short Covering Long Buildup
KOTAKBANK 2026.50 1.68% 383 2312 Long Buildup Long Buildup
LT 3251.10 2.45% -2881 -993 Short Covering Short Covering
MARUTI 11705 1.32% -1790 1393 Short Covering Long Buildup
NTPC 337.2 1.64% -224 967 Short Covering Long Buildup
RELIANCE 1238.55 -0.02% 3530 -1880 Long Buildup Short Covering
SBIN 730.55 1.04% -3022 -152 Short Covering Short Covering
SUNPHARMA 1729.65 1.46% -602 1760 Short Covering Long Buildup
TCS 3547.25 1.33% -2717 -762 Short Covering Short Covering
ULTRACEMCO 10742 1.83% -1111 311 Short Covering Long Buildup

What Do These Terms Mean?

  • Long Buildup: OI increases, often accompanied by a price move in the expected direction—up for calls (bullish) or down for puts (bearish). This indicates that traders are actively purchasing options, anticipating movement in that direction.

  • Short Buildup: OI increases, but the price moves against the option buyers—down for calls (bearish) or up for puts (bullish). It often means traders are selling (writing) options.

  • Short Covering: OI decreases, typically with a price rise (for calls) or fall (for puts). Short sellers are closing positions by buying back options, adding fuel to the price move.

  • Long Unwinding: OI decreases, often with a price drop (for calls) or rise (for puts). Long holders are selling their options, signaling fading confidence.

Quick Tip: Widespread Short Covering (e.g., LT, TCS) with price gains often signals a broader rally—watch momentum!

Spotlight on high-activity options

Next, we zoom into specific options with high trading volume compared to their OI. This can highlight strikes where traders are active, often signaling key levels.

Contract Volume/OI Ratio Explanation VOLUME OI IV
ICICIBANK 1310 CE 27 Mar 2025 8.57 Long Buildup 9611 1121 17.67
ICICIBANK 1290 PE 27 Mar 2025 7.64 Long Buildup 9103 1191 19.37
TCS 3500 CE 27 Mar 2025 6.26 Long Buildup 12513 2000 18.03
HDFCBANK 1720 CE 27 Mar 2025 4.82 Long Buildup 13922 2888 16.09
KOTAKBANK 2020 CE 27 Mar 2025 4.68 Long Buildup 10570 2260 17.45
AXISBANK 1040 PE 27 Mar 2025 4.21 Long Buildup 6572 1560 23.19
HINDUNILVR 2200 CE 27 Mar 2025 4.19 Long Buildup 5379 1285 17.3
HDFCBANK 1720 PE 27 Mar 2025 3.87 Long Buildup 12202 3150 17.13
MARUTI 11300 PE 27 Mar 2025 3.44 Long Buildup 3785 1100 21.63
KOTAKBANK 2040 CE 27 Mar 2025 3.36 Long Buildup 7292 2169 17.73
LT 3250 PE 27 Mar 2025 3.33 Long Buildup 4125 1239 20.99
TCS 3550 PE 27 Mar 2025 3.16 Long Buildup 4627 1464 21.77
LT 3200 CE 27 Mar 2025 3.12 Long Buildup 9240 2958 19.34
AXISBANK 1030 PE 27 Mar 2025 2.92 Long Buildup 6203 2127 23.57
INFY 1540 PE 27 Mar 2025 2.91 Long Buildup 4638 1595 26.77
BAJFINANCE 8100 PE 27 Mar 2025 2.88 Long Buildup 3730 1294 31.74
ADANIENT 2300 CE 27 Mar 2025 2.86 Long Buildup 6139 2150 36.29
MARUTI 11200 PE 27 Mar 2025 2.77 Long Buildup 2815 1016 22.61
RELIANCE 1230 PE 27 Mar 2025 2.45 Long Buildup 6639 2710 19.1
INFY 1620 CE 27 Mar 2025 2.45 Long Buildup 8221 3356 22.34
HCLTECH 1560 CE 27 Mar 2025 2.43 Long Buildup 3247 1335 21.68
RELIANCE 1240 PE 27 Mar 2025 2.41 Long Buildup 10461 4344 18.56
ITC 405 PE 27 Mar 2025 2.36 Long Buildup 2360 1002 19.37
ITC 410 PE 27 Mar 2025 2.13 Long Buildup 3174 1491 18.85
NTPC 335 PE 27 Mar 2025 2.10 Long Buildup 2913 1384 20.3
SBIN 730 PE 27 Mar 2025 2.09 Long Buildup 7281 3485 20.46
ULTRACEMCO 10700 CE 27 Mar 2025 2.09 Long Buildup 2665 1277 20.13
SUNPHARMA 1740 CE 27 Mar 2025 2.05 Long Buildup 3909 1908 15.1
BHARTIARTL 1660 PE 27 Mar 2025 2.03 Long Buildup 2292 1129 22.25

How to understand Volume/OI Ratio

  • What It Is: The Volume/OI Ratio compares today’s trading volume to existing OI. A high ratio means lots of new trades relative to open positions.
  • What It Suggests:
    • Above 2: Notable activity, possibly signaling interest in that strike as support/resistance.
    • Above 5: Unusual activity, often tied to big expectations or event
  • Low Ratio (Below 1): Less trading than OI, suggesting positions are being held or closed rather than new activity.

Why it matters: High ratios like 8.57 or 7.64 scream action—potential breakout zones!

Final Thoughts

F&O data is your edge—OI shifts reveal trader moves, and high Volume/OI Ratios (like ICICIBANK’s 8.57) flag unusual action. Banking stocks are roaring, IT’s rebounding, and volatility’s brewing. Pair these signals with charts to catch the next big move!

Happy trading—catch you next time!

Disclaimer: This content is for educational purposes only, based on data as of 1 PM IST on March 18, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.