Infosys Ltd Sees Robust Call Option Activity Ahead of February Expiry

Strong Call Option Volumes Highlight Investor Interest

Data from the options market reveals that Infosys call options expiring on 24 February 2026 have witnessed significant trading activity across several strike prices. The most active strike was Rs 1380, with 15,520 contracts traded, generating a turnover of ₹2,537.83 lakhs and an open interest of 5,143 contracts. Close behind was the Rs 1460 strike, which saw 11,080 contracts traded and a turnover of ₹580.15 lakhs, with open interest standing at 7,870 contracts.

Other notable strikes include Rs 1480 with 9,250 contracts traded (₹375.92 lakhs turnover), Rs 1600 with 7,924 contracts (₹69.73 lakhs turnover), and Rs 1360 with 7,870 contracts traded (₹1,662.14 lakhs turnover). The underlying stock price at the time was ₹1,400.10, indicating that investors are positioning for a potential upside move beyond current levels.

Expiry Patterns and Strike Price Distribution

The concentration of open interest at the Rs 1600 strike price, which holds the highest open interest of 15,105 contracts, suggests that market participants are betting on a substantial rally in Infosys shares over the next week. This strike is approximately 14.3% above the current market price, indicating a confident bullish stance. Meanwhile, the heavy volumes at strikes closer to the current price, such as Rs 1380 and Rs 1460, point to a range of strategies from near-the-money hedging to outright bullish bets.

Stock Performance and Technical Context

Infosys outperformed its sector by 0.98% on the day, gaining 2.78% compared to the sector’s 1.62% and the Sensex’s decline of 0.22%. The stock touched an intraday high of Rs 1,405, marking a 2.89% rise. However, it remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling that the broader trend is still under pressure. This divergence between option market optimism and technical indicators suggests a potential inflection point for the stock.

Investor participation has shown signs of waning, with delivery volumes falling by nearly 30% to 72.32 lakh shares on 16 February compared to the five-day average. Despite this, the stock maintains a high dividend yield of 3.37%, which continues to attract income-focused investors. Liquidity remains robust, with the stock capable of handling trade sizes up to ₹59.92 crore based on 2% of the five-day average traded value.

Mojo Score and Analyst Ratings

Infosys currently holds a Mojo Score of 57.0, categorised as a Hold, reflecting a recent downgrade from a Buy rating on 9 February 2026. The downgrade was influenced by a combination of technical weakness and cautious outlook on near-term earnings growth. The company’s market capitalisation stands at a substantial ₹5,53,970 crore, confirming its status as a large-cap heavyweight in the Computers - Software & Consulting sector.

Despite the Hold rating, the stock’s recent outperformance relative to its sector and the Sensex, coupled with the active call option interest, suggests that some investors are anticipating a positive turnaround. The divergence between fundamental caution and market optimism is a key dynamic to monitor in the coming sessions.

Investor Sentiment and Market Implications

The surge in call option volumes and open interest at strikes above the current market price indicates a predominantly bullish sentiment among traders. This could be driven by expectations of strong quarterly results, positive guidance, or broader sectoral tailwinds in the IT services space. However, the stock’s technical positioning below all major moving averages warrants caution, as a sustained breakout above these levels would be necessary to confirm a trend reversal.

Market participants should also consider the falling delivery volumes, which may imply reduced conviction among long-term holders. This dynamic could lead to increased volatility as expiry approaches, with option writers and buyers adjusting positions accordingly.

Strategic Outlook for Investors

For investors considering exposure to Infosys, the current call option activity offers valuable insights into market expectations. The heavy volumes at strikes ranging from Rs 1360 to Rs 1600 suggest that traders are positioning for a potential price appreciation of up to 14% within the next week. This could be an opportune moment for tactical call buying or for deploying spread strategies to capitalise on anticipated volatility.

However, given the Hold rating and the stock’s technical challenges, a cautious approach is advisable. Investors should monitor upcoming earnings announcements, sector developments, and broader market trends before committing to significant positions. The high dividend yield of 3.37% also provides a defensive cushion for long-term holders amid short-term fluctuations.

Overall, the interplay between robust call option demand and mixed fundamental signals underscores the complexity of the current market environment for Infosys. Active traders may find opportunities in the options market, while long-term investors should weigh the risks and rewards carefully.

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