Infosys Ltd Sees Robust Call Option Activity Ahead of February Expiry

Strong Call Option Volumes Indicate Bullish Positioning

Data from the options market reveals that Infosys call options expiring on 24 February 2026 have witnessed substantial trading activity. The strike price of ₹1440 saw 7,467 contracts traded, generating a turnover of ₹178.31 lakhs and an open interest of 9,673 contracts. Similarly, the ₹1460 strike recorded 6,739 contracts traded with a turnover of ₹107.55 lakhs and open interest standing at 8,175 contracts.

Notably, the ₹1500 strike price call options attracted the highest open interest of 15,830 contracts, with 6,556 contracts traded and a turnover of ₹55.33 lakhs. This concentration at the ₹1500 strike, which is approximately 8.1% above the current underlying value of ₹1387.3, suggests that traders are anticipating a meaningful price appreciation in Infosys over the coming week.

The ₹1380 strike, just below the current market price, also saw heavy activity with 7,449 contracts traded and a turnover of ₹745.20 lakhs, indicating active hedging or speculative strategies close to the money.

Underlying Stock Performance and Technical Context

Infosys is currently trading at ₹1387.3, reflecting a day gain of 0.92%, outperforming the broader Sensex which declined by 0.13% on the same day. The stock’s performance is broadly in line with its sector, Computers - Software & Consulting, which gained 0.71%. However, the technical picture remains cautious as Infosys is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a lack of short- to long-term momentum.

Investor participation appears to be waning, with delivery volumes on 18 February falling by 17.96% compared to the 5-day average, registering 95.59 lakh shares. Despite this, the stock maintains a healthy liquidity profile, with a 2% threshold of the 5-day average traded value supporting trade sizes up to ₹76.6 crore comfortably.

Fundamental and Market Sentiment Overview

Infosys, a large-cap company with a market capitalisation of ₹5,56,930 crore, operates in the Computers - Software & Consulting sector. The company currently holds a Mojo Score of 57.0, which corresponds to a Hold rating, recently downgraded from Buy on 9 February 2026. The downgrade reflects a more cautious outlook amid mixed technical signals and sector dynamics.

Despite the Hold rating, Infosys offers a relatively attractive dividend yield of 3.36%, which may appeal to income-focused investors amid volatile market conditions. The stock’s market cap grade is 1, indicating its status as a large-cap stock with significant institutional interest and analyst coverage.

Expiry Patterns and Strategic Implications

The concentration of call option activity at strike prices between ₹1380 and ₹1500 for the 24 February expiry suggests that traders are positioning for a potential rebound or breakout in Infosys within the next week. The open interest data indicates that the ₹1500 strike is the focal point for bullish bets, with a significant number of contracts outstanding that could influence price dynamics as expiry approaches.

Such positioning often reflects expectations of positive catalysts, possibly linked to upcoming quarterly results, sectoral developments, or broader market sentiment favouring IT services stocks. However, the current technical weakness and reduced delivery volumes caution investors to monitor price action closely before committing to directional trades.

Investors should also be aware that the stock’s trading below all major moving averages may limit near-term upside, and the high open interest at out-of-the-money strikes could lead to increased volatility as traders adjust or unwind positions ahead of expiry.

Comparative Sector and Market Context

Within the Computers - Software & Consulting sector, Infosys remains a heavyweight but faces competition from peers with stronger momentum or higher mojo scores. The recent downgrade from Buy to Hold by MarketsMOJO reflects a tempered outlook relative to other sector constituents that may offer better risk-reward profiles.

Given the mixed signals, investors might consider diversifying exposure within the sector or exploring alternative large-cap stocks with more favourable technical and fundamental metrics.

Investor Takeaway

Infosys Ltd’s active call option market ahead of the 24 February expiry highlights a clear bullish tilt among traders, with significant open interest clustered at strikes above the current market price. This suggests expectations of a price recovery or positive news flow in the short term. However, the stock’s technical underperformance and recent downgrade to Hold advise caution.

Investors should weigh the potential for near-term gains against the risks posed by subdued delivery volumes and resistance at key moving averages. Monitoring open interest changes and price action in the coming days will be crucial to gauge whether the bullish sentiment in options translates into sustained stock price appreciation.

For those considering exposure to the Computers - Software & Consulting sector, it may be prudent to evaluate alternative large-cap stocks with stronger mojo scores and more favourable technical setups, as identified by MarketsMOJO’s SwitchER tool.

Summary of Key Metrics for Infosys Ltd

Market Capitalisation: ₹5,56,930 crore (Large Cap)
Current Price: ₹1387.3
Day Change: +0.92%
Dividend Yield: 3.36%
Mojo Score: 57.0 (Hold, downgraded from Buy on 9 Feb 2026)
Open Interest Highlights (24 Feb Expiry):
  - ₹1500 Strike: 15,830 contracts
  - ₹1440 Strike: 9,673 contracts
  - ₹1460 Strike: 8,175 contracts
Delivery Volume (18 Feb): 95.59 lakh shares (-17.96% vs 5-day avg)

Conclusion

Infosys Ltd’s options market activity ahead of the imminent expiry reflects a nuanced outlook. While call option volumes and open interest suggest optimism, the underlying stock’s technical challenges and recent rating downgrade temper enthusiasm. Investors should adopt a balanced approach, combining options market insights with fundamental and technical analysis to navigate the evolving landscape effectively.

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