Infosys Ltd Sees Robust Call Option Activity Ahead of February Expiry

Robust Call Option Volumes Signal Investor Optimism

On 5 February 2026, Infosys Ltd emerged as one of the most actively traded stocks in the call options segment. The highest volume was recorded at the 1600 strike price call option, with 7,474 contracts traded, generating a turnover of ₹545.3 lakhs and an open interest of 12,398 contracts. This strike price is approximately 4.2% above the current underlying stock price of ₹1,536.3, indicating that traders are betting on a moderate upside in the near term.

Close behind, the 1540 strike call option saw 4,708 contracts traded with a turnover of ₹815.4 lakhs and an open interest of 7,477 contracts. Similarly, the 1560 strike call option recorded 4,144 contracts traded, turnover of ₹550.3 lakhs, and open interest of 7,553 contracts. These strike prices cluster around the current market price, suggesting a concentrated bullish positioning as expiry approaches.

Underlying Stock Performance and Technical Context

Infosys Ltd, a heavyweight in the Computers - Software & Consulting sector, currently trades at ₹1,536.3, marginally outperforming its sector by 0.31% on the day with a 1-day return of 0.16%, compared to the sector’s -0.22% and Sensex’s -0.47%. Despite this relative outperformance, the stock remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a cautious technical backdrop.

Investor participation has notably increased, with delivery volume on 4 February reaching 1.65 crore shares, a sharp 246.03% rise over the 5-day average delivery volume. This heightened activity underscores growing interest in the stock, potentially driven by expectations of positive catalysts or earnings momentum.

Dividend Yield and Market Capitalisation Strengthen Appeal

Infosys offers a healthy dividend yield of 3% at current prices, which adds to its attractiveness for income-focused investors. The company’s market capitalisation stands at a robust ₹6,22,758 crore, categorising it firmly as a large-cap stock with high liquidity. The stock’s liquidity supports sizeable trade volumes, with the capacity to handle trade sizes up to ₹39.94 crore based on 2% of the 5-day average traded value.

Mojo Score Upgrade Reflects Improved Outlook

MarketsMOJO has upgraded Infosys Ltd’s Mojo Grade from Hold to Buy as of 22 December 2025, reflecting an improved outlook based on fundamental and technical factors. The stock’s Mojo Score stands at 70.0, signalling a favourable investment proposition. The Market Cap Grade is rated 1, underscoring the company’s large-cap status and strong market presence.

This upgrade aligns with the increased call option activity, suggesting that institutional and retail investors alike are positioning for a potential upward move in the stock price over the coming weeks.

Expiry Patterns and Strike Price Concentration

The concentration of call option volumes and open interest at the 1540, 1560, and 1600 strike prices for the 24 February 2026 expiry indicates that traders expect the stock to trade above these levels within the next three weeks. The highest open interest at the 1600 strike (12,398 contracts) is particularly noteworthy, as it represents a significant bet on the stock appreciating by nearly 4.2% from current levels.

Such positioning often precedes volatility around expiry dates, as traders adjust their portfolios to capitalise on expected price movements or hedge existing exposures.

Balancing Bullish Sentiment with Technical Caution

While the call option activity points to bullish sentiment, the stock’s position below all major moving averages suggests that caution is warranted. Investors should monitor whether Infosys can break above these technical resistance levels to confirm a sustained uptrend. The elevated delivery volumes and dividend yield provide additional support, but the broader market environment and sector performance will also influence near-term price action.

Investor Takeaway

For investors, the current surge in call option activity in Infosys Ltd offers a clear signal of bullish positioning ahead of the February expiry. The strike prices with the highest volumes and open interest suggest expectations of moderate price appreciation in the near term. However, the technical backdrop advises prudence, as the stock must overcome resistance levels to sustain momentum.

Given the company’s strong fundamentals, large market capitalisation, and attractive dividend yield, Infosys remains a compelling large-cap stock within the Computers - Software & Consulting sector. Investors should continue to monitor option market dynamics alongside price action and sector trends to gauge the sustainability of the current optimism.

Summary of Key Metrics

• Current stock price: ₹1,536.3
• Highest call option volume strike: 1600 (7,474 contracts)
• Open interest at 1600 strike: 12,398 contracts
• Delivery volume on 4 Feb: 1.65 crore shares (+246% vs 5-day avg)
• Dividend yield: 3%
• Market cap: ₹6,22,758 crore
• Mojo Grade: Buy (upgraded from Hold on 22 Dec 2025)
• Sector performance (1D): -0.22% vs Infosys +0.16%

As expiry approaches, the interplay between option market positioning and underlying stock performance will be critical for investors seeking to capitalise on Infosys Ltd’s evolving market narrative.

Unlock special upgrade rates for a limited period. Start Saving Now →