Infosys Ltd Sees Heavy Call Option Activity Ahead of January Expiry

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Infosys Ltd (INFY), a stalwart in the Computers - Software & Consulting sector, has witnessed significant call option activity ahead of the 27 January 2026 expiry, signalling bullish positioning despite recent price softness. The stock’s trading patterns and option market dynamics offer valuable insights into investor sentiment and potential near-term price movements.
Infosys Ltd Sees Heavy Call Option Activity Ahead of January Expiry



Strong Call Option Interest at 1680 Strike


The most actively traded call option for Infosys is the 1680 strike expiring on 27 January 2026. Market participants executed 5,645 contracts, generating a turnover of ₹74.514 lakhs. Open interest at this strike stands at 13,232 contracts, indicating sustained interest and potential accumulation of bullish bets. Given the underlying stock price of ₹1,639.0, the 1680 strike is positioned slightly out-of-the-money, suggesting traders anticipate a moderate upside in the coming week.



Price Performance and Moving Averages


Infosys has experienced a mild correction, with a one-day return of -1.14% and a three-day consecutive decline totalling -2.76%. This underperformance slightly exceeds the sector’s one-day fall of -1.00% and the Sensex’s marginal dip of -0.16%. Despite this, the stock remains technically resilient, trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This technical positioning suggests that the recent pullback may be a short-term consolidation rather than a reversal of the prevailing uptrend.



Investor Participation and Liquidity Considerations


Delivery volume on 20 January was 36.02 lakh shares, marking a 34% decline compared to the five-day average delivery volume. This drop in investor participation could reflect cautious sentiment amid the recent price dip. Nevertheless, liquidity remains robust, with the stock’s average traded value supporting trade sizes up to ₹32.07 crore comfortably. Such liquidity facilitates efficient execution of large option and stock trades, underpinning the active options market.




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Mojo Score Upgrade Reflects Improving Fundamentals


Infosys currently holds a Mojo Score of 70.0, categorised as a Buy, upgraded from a previous Hold rating on 22 December 2025. This upgrade reflects improved financial metrics and positive trend assessments. The company’s market capitalisation stands at a substantial ₹6,72,143 crore, affirming its large-cap status and sector leadership. The Market Cap Grade of 1 further underscores its dominant position in the Computers - Software & Consulting industry.



Option Market Sentiment and Expiry Dynamics


The concentration of call option activity at the 1680 strike price, just above the current stock price, suggests traders are positioning for a moderate rally in the near term. The expiry date of 27 January 2026 is less than a week away, intensifying focus on short-term directional bets. Elevated open interest at this strike indicates that many investors are either initiating bullish positions or rolling over existing ones, anticipating a potential breakout above this level.



Comparative Sector and Market Context


While Infosys has underperformed the Sensex marginally over the past day, its relative performance aligns closely with the broader Computers - Software & Consulting sector. The sector’s 1-day return of -1.00% mirrors the stock’s -1.14%, indicating that sector-wide factors may be influencing price action. Investors should monitor upcoming earnings announcements and macroeconomic data that could impact IT spending and consulting demand, which remain key drivers for Infosys.




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Outlook and Investor Takeaways


Despite a recent short-term decline, Infosys’s technical strength and active call option interest suggest that investors remain cautiously optimistic about the stock’s prospects. The elevated open interest at the 1680 strike price indicates a consensus expectation of a rebound or at least a stabilisation above current levels. Investors should weigh the stock’s strong fundamentals, reflected in the recent Mojo Score upgrade, against the broader market volatility and sector-specific risks.



Given the stock’s liquidity and active options market, traders can consider strategic call option positions to capitalise on anticipated price movements while managing risk. The expiry on 27 January 2026 offers a near-term horizon for these strategies, with the 1680 strike serving as a key technical and psychological level to watch.



Conclusion


Infosys Ltd remains a focal point for options traders and investors alike, with its blend of solid fundamentals, technical resilience, and active call option interest. While the stock has experienced a modest pullback, the prevailing market sentiment as expressed through options activity points to a cautiously bullish outlook. Monitoring open interest trends and price action around the 1680 strike will be critical for gauging the stock’s near-term trajectory.






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