Put Option Activity Highlights
Data from the derivatives market reveals that Infosys put options have witnessed substantial trading volumes and open interest, particularly for contracts expiring on 24 February and 30 March 2026. The most actively traded put options include strikes at ₹1,280, ₹1,300, ₹1,320, and ₹1,200, with the underlying stock price hovering near ₹1,279.8 at the time of analysis.
Specifically, the ₹1,300 strike put expiring on 24 February saw 4,750 contracts traded, generating a turnover of ₹28.23 crores and an open interest of 2,309 contracts. Meanwhile, the same strike price for the 30 March expiry recorded even higher activity with 4,561 contracts traded and a turnover exceeding ₹110 crores, alongside an open interest of 2,971 contracts. The ₹1,280 strike for 30 March also attracted 3,022 contracts with a turnover of ₹62.22 crores and open interest of 1,801 contracts.
Notably, the ₹1,200 strike put option for 30 March expiry registered 3,414 contracts traded and an open interest of 3,516 contracts, indicating significant interest in downside protection well below the current market price.
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Market Context and Stock Performance
Infosys has been under pressure in recent sessions, recording a consecutive five-day decline that has eroded 7.77% of its value. The stock opened sharply lower by 2% on 24 February 2026 and touched an intraday low of ₹1,281, marking a fresh 52-week low. This performance trails the IT software sector, which itself declined by 3.12% on the same day, and the broader Sensex index, which fell 0.89%.
Technical indicators reinforce the bearish sentiment, with Infosys trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. Investor participation has also waned, as delivery volumes dropped by 6.64% compared to the five-day average, suggesting reduced conviction among buyers.
Despite the recent weakness, Infosys continues to offer a relatively attractive dividend yield of 3.47%, which may provide some cushion for long-term investors amid volatility.
Interpretation of Put Option Trends
The surge in put option volumes and open interest at strike prices near and below the current market price indicates that market participants are either hedging existing long positions or speculating on further downside. The concentration of activity around the ₹1,300 and ₹1,280 strikes for near-term expiry suggests that traders are positioning for a potential test of support levels in the coming weeks.
Moreover, the significant open interest at the ₹1,200 strike for March expiry points to a cautious outlook extending beyond the immediate term, with investors seeking protection against a deeper correction. This pattern is consistent with a broader risk-off stance in the IT sector, which has been impacted by global macroeconomic uncertainties and concerns over margin pressures.
From a risk management perspective, the elevated put option activity can be viewed as a prudent measure by institutional investors to mitigate downside risks, especially given Infosys’s recent downgrade from a Buy to a Hold rating by MarketsMOJO on 9 February 2026. The company’s Mojo Score currently stands at 57.0, reflecting a moderate outlook amid mixed fundamentals.
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Sector and Market Implications
The IT software & consulting sector has faced headwinds recently, with Infosys’s performance emblematic of broader investor concerns. The sector’s 3.12% decline on 24 February 2026 reflects worries about global demand softness, currency fluctuations, and potential margin compression. Infosys, as a bellwether large-cap stock with a market capitalisation of ₹5,38,643 crores, often sets the tone for sector sentiment.
Given the stock’s liquidity profile, with an average traded value sufficient to support sizeable trades up to ₹49.71 crores, the active put option market also suggests that institutional players are actively managing exposure. The combination of falling prices, increased put buying, and reduced delivery volumes points to a cautious stance that may persist until clearer signs of earnings stability or sector recovery emerge.
Investor Takeaways
For investors, the current environment calls for a balanced approach. While the elevated put option activity signals near-term downside risks, the stock’s attractive dividend yield and large-cap status provide some defensive qualities. Monitoring open interest trends and expiry patterns will be crucial to gauge shifts in market sentiment.
Investors should also consider the recent downgrade to Hold by MarketsMOJO and the moderate Mojo Score of 57.0 as indicators to reassess portfolio allocations. Those with existing exposure may look to hedge downside risk through put options or consider alternative IT sector stocks with stronger momentum or fundamentals.
Overall, the put option market activity around Infosys Ltd offers valuable insights into investor psychology and risk management strategies amid a challenging market backdrop.
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