Strong Call Option Volumes Concentrated Near Key Strikes
Data from the derivatives market reveals that Infosys call options with strike prices ranging from ₹1,240 to ₹1,300 have witnessed significant trading activity. The most notable volume was recorded at the ₹1,300 strike, where 7,431 contracts changed hands, generating a turnover of approximately ₹322.2 lakhs. This strike also holds the highest open interest among the call options analysed, with 13,121 contracts outstanding, indicating sustained investor interest at this level.
Close behind, the ₹1,280 strike saw 3,450 contracts traded with an open interest of 11,908, while the ₹1,250 and ₹1,240 strikes recorded 3,667 and 3,328 contracts traded respectively. The turnover figures for these strikes were ₹386.6 lakhs and ₹418.7 lakhs, underscoring the liquidity and active positioning in these near-the-money options.
Underlying Share Price and Market Context
Infosys shares closed at ₹1,223.4 on 2 June 2026, down 3.54% for the day, underperforming the broader Sensex which declined 0.94%. The stock opened with a gap down of 2.26% and touched an intraday low of ₹1,227, reflecting some short-term selling pressure. However, it outperformed its sector, IT - Software, which fell by 3.98%, suggesting relative resilience amid sector-wide weakness.
Technical indicators show the stock trading above its 5-day, 20-day, and 50-day moving averages but below the 100-day and 200-day averages. This mixed technical picture points to a potential consolidation phase, with investors closely watching for a breakout or further correction.
Investor Sentiment and Positioning
The heavy call option activity at strikes above the current market price suggests that traders are positioning for a moderate upside in Infosys shares by the end of June. The concentration of open interest at ₹1,280 and ₹1,300 strikes indicates a bullish bias, with market participants anticipating a possible rebound or positive catalyst in the near term.
Interestingly, the stock’s Mojo Score has improved to 60.0, upgrading its Mojo Grade from Sell to Hold as of 13 April 2026. This reflects a cautious but improving outlook based on fundamental and technical factors. The large-cap stock, with a market capitalisation of ₹5,15,576 crores, remains a key bellwether in the Computers - Software & Consulting sector.
Expiry Dynamics and Potential Impact
With the 30 June 2026 expiry approaching, the elevated open interest and turnover in call options at these strike prices could lead to increased volatility in the underlying stock. Traders often adjust their positions as expiry nears, which can result in sharp price movements, especially if the stock approaches these key strike levels.
Given the current underlying price of ₹1,223.4, the ₹1,240 and ₹1,250 strikes are slightly out-of-the-money, while ₹1,280 and ₹1,300 are further out. The substantial open interest at these levels suggests that market participants are betting on a meaningful price appreciation over the next four weeks, potentially driven by earnings updates, sector developments, or broader market trends.
Comparative Sector and Market Performance
While Infosys has experienced a short-term decline, its relative outperformance against the IT - Software sector and the Sensex indicates selective investor confidence. The sector’s 3.98% drop contrasts with Infosys’s 3.54% fall, and the stock’s ability to maintain levels above key short-term moving averages supports the notion of underlying strength.
Additionally, delivery volumes on 2 June surged to 2.2 crore shares, a 64.07% increase over the five-day average, signalling rising investor participation. This heightened activity may be linked to the options market positioning, as traders hedge or leverage their directional views.
Outlook and Strategic Considerations for Investors
For investors and traders, the current call option activity in Infosys offers valuable insights into market expectations. The bullish positioning at strikes between ₹1,240 and ₹1,300 suggests confidence in a near-term recovery or positive momentum. However, the recent price weakness and mixed technical signals counsel caution.
Investors should monitor the stock’s movement relative to these strike prices as expiry approaches, as well as any sectoral or macroeconomic developments that could influence sentiment. The upgrade in Mojo Grade to Hold indicates that while the stock is no longer a sell, it may require further confirmation before being considered a strong buy.
Given the stock’s liquidity, with an average traded value supporting sizeable trade sizes of nearly ₹69 crore, market participants can execute positions efficiently, which is favourable for both institutional and retail investors.
Conclusion
Infosys Ltd’s active call option market ahead of the 30 June expiry highlights a nuanced investor stance: a blend of cautious optimism amid recent price softness. The concentration of open interest and turnover at strikes above the current market price reflects expectations of a moderate rally, supported by improving fundamental scores and relative sector strength.
As expiry draws near, the interplay between option positioning and underlying price action will be critical to watch. Investors should remain vigilant to technical developments and broader market cues to capitalise on potential opportunities or mitigate risks in this large-cap IT heavyweight.
