Maruti Suzuki becomes top Nifty gainer; stock's ITM call options price soar over 900 per cent!

Nifty is trading with gains of over half a per cent today while among the sectoral indices, the top-performing sector is Nifty Auto as it has soared nearly 1.80 per cent.   

One of the stocks, which has caught traders’ eye in the auto index is Maruti Suzuki India. The stock, which has almost 18.89 per cent weightage in Nifty Auto index, has jumped nearly 5 per cent.  Maruti June Futures has seen an addition of open interest to the tune of 5.12 per cent while July series Futures has seen an open interest surge of as much as 63.31 per cent. Theoretically, the price rise along with an increase in the open interest mostly indicates long positions being built up.   

Talking about the options’ activity, in today’s session, the 7,000 Call option has seen aggressive unwinding as nearly 1.42 lakh shares have been shed in the open interest. A similar sort of trend has been witnessed in the 7,100 & 7,200 Call option as nearly 0.68 lakh and 0.62 lakh shares have unwound. On the other hand, the 7,100 Put options have seen an addition of nearly 0.7 lakh shares in the open interest, which is then followed by 7,000 Put options as it witnessed an addition of nearly 0.6 lakh shares in the open interest. The maximum open interest concentration on the call side is seen at 7,300 strikes while on the put side, 7,000 strikes have the maximum open interest concentration.   

The in-the-money (ITM) call options like 7,100, 7,200, and 7,000 strikes have seen a massive jump of 971, 960 and 701 per cent, respectively in their price.   

Interestingly, the stock has witnessed a faster retracement as after a decline of 7.4 per cent from the swing high of Rs 7,366.45 to the low of Rs 6,821 in eight trading sessions, the stock retraced nearly 78 per cent of its downswing in just two trading sessions.