F&O Insights for 21/03/25: Unusual options activity

Disclaimer: This content is for educational purposes only, based on data as of 1 PM IST on March 21, 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 decoding Futures & Options (F&O) data to help you spot big moves, no matter your trading level.

Let’s unpack the signals!

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 8950 3.11% 880 4511 Long Buildup Long Buildup
KOTAKBANK 2077.3 2.05% 135 3846 Long Buildup Long Buildup
ICICIBANK 1341.6 1.51% -585 2113 Short Covering Long Buildup
TCS 3598.25 0.97% -4232 1901 Short Covering Long Buildup
MARUTI 11877 1.25% 684 2814 Long Buildup Long Buildup
INFY 1594 -1.36% 3380 1372 Short Buildup Short 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: High Put OI Chg (e.g., BAJFINANCE’s 4511) with Long Buildup often means hedging alongside bullish bets—dig deeper!

Spotlight on high-activity options

These options show unusual trading volume relative to OI, hinting at potential big moves.

Contract Volume/OI Ratio Explanation VOLUME OI IV
BAJFINANCE 9100 CE 27 Mar 2025 11.09 Long Buildup 25939 2340 23.78
BAJFINANCE 8800 PE 27 Mar 2025 10.39 Long Buildup 22705 2186 25.43
KOTAKBANK 2060 CE 27 Mar 2025 10.42 Long Buildup 13425 1288 14.39
KOTAKBANK 2060 PE 27 Mar 2025 4.59 Long Buildup 7726 1684 21.4
ICICIBANK 1340 CE 27 Mar 2025 9.76 Long Buildup 15694 1608 14.41
ICICIBANK 1330 PE 27 Mar 2025 6.62 Long Buildup 7365 1113 20.35
TCS 3600 CE 27 Mar 2025 9.57 Long Buildup 49849 5209 19.38
TCS 3550 PE 27 Mar 2025 6.47 Long Buildup 18276 2824 20.82
MARUTI 11900 CE 27 Mar 2025 7.95 Long Buildup 20534 2584 14.52
MARUTI 11800 PE 27 Mar 2025 5.71 Long Buildup 10026 1755 19.44
INFY 1580 CE 27 Mar 2025 7.91 Long Buildup 12506 1581 23.28
INFY 1580 PE 27 Mar 2025 6.65 Long Buildup 20543 3088 23.82

How to understand Volume/OI Ratio

What It Is: Compares today’s trading volume to existing OI. A high ratio signals fresh action.

What It Suggests:

  • Above 2: Notable interest—traders see this strike as key.
  • Above 5: Unusual activity, often tied to big expectations (e.g., BAJFINANCE’s 11.09 at 9100 CE).
  • Below 1: Quiet—positions are being held or closed.

Why It Matters: Ratios like 11.09 or 10.42 scream action—potential breakout zones!

Final Thoughts

F&O data is your edge—OI shifts reveal trader intent, and high Volume/OI Ratios (like BAJFINANCE’s 11.09) spotlight unusual action. Finance is surging, IT’s mixed, and opportunities abound. Pair these clues with charts to catch the next move!

Happy trading—see you next time!

Disclaimer: This content is for educational purposes only, based on data as of 1 PM IST on March 21, 2025. This is not financial advice. Trading involves risks. Always do your own analysis and manage risk before trading.