Strong Call Option Volumes Concentrated Near Current Price
On 18 May 2026, Infosys recorded heavy call option volumes with three strike prices dominating the activity: ₹1,130, ₹1,140, and ₹1,150. The underlying stock closed at ₹1,129.40, placing these strikes just at or slightly above the current market price, indicating a strategic positioning by traders expecting upward movement.
The most actively traded call option was at the ₹1,140 strike, with 5,616 contracts exchanged, generating a turnover of ₹400.98 lakhs and an open interest of 3,539 contracts. Close behind was the ₹1,150 strike, which saw 5,449 contracts traded, turnover of ₹289.01 lakhs, and a notably higher open interest of 6,023 contracts, suggesting sustained interest at this level. The ₹1,130 strike also attracted significant attention with 4,957 contracts traded and turnover of ₹442.36 lakhs, supported by an open interest of 3,341 contracts.
Expiry Patterns and Market Implications
All these call options are set to expire on 26 May 2026, just over a week from the current date, which typically intensifies speculative and hedging activity. The concentration of open interest at the ₹1,150 strike price, which is approximately 1.8% above the current stock price, suggests that traders are positioning for a breakout beyond this level in the short term.
This pattern of call buying near the money is often interpreted as a bullish indicator, reflecting confidence that Infosys could rally in the coming days. However, the stock’s proximity to its 52-week low of ₹1,089 (just 3.45% away) tempers exuberance, signalling that while optimism exists, risks remain given the recent downtrend.
Stock Performance and Technical Context
Infosys has outperformed its sector on the day, gaining 1.05% compared to a sector decline of 0.23% and a Sensex drop of 1.14%. The stock has recorded gains over the past two consecutive sessions, delivering a cumulative return of 3.0% during this period. Despite this short-term strength, Infosys continues to trade below its key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — indicating that the broader trend remains subdued.
Investor participation has notably increased, with delivery volumes on 15 May rising by 73.75% to 1.11 crore shares compared to the five-day average. This heightened activity suggests renewed interest from long-term investors, potentially supporting the recent price gains.
Fundamental Strength and Market Positioning
Infosys remains a large-cap heavyweight in the Computers - Software & Consulting sector, boasting a market capitalisation of ₹4,53,581 crores. The company currently holds a Mojo Score of 57.0 and a Mojo Grade of Hold, upgraded from Sell on 13 April 2026, reflecting an improved but cautious outlook from MarketsMOJO analysts.
The stock offers a relatively attractive dividend yield of 4.12%, which may appeal to income-focused investors amid volatile market conditions. Liquidity remains robust, with the stock capable of handling trade sizes up to ₹31.18 crores based on 2% of the five-day average traded value, facilitating smooth execution for institutional and retail participants alike.
Investor Sentiment and Strategic Considerations
The pronounced call option activity at strikes near and slightly above the current price level suggests that traders are positioning for a potential rebound in Infosys shares ahead of the expiry. This could be driven by expectations of positive quarterly results, sectoral tailwinds, or broader market recovery.
However, the stock’s technical weakness relative to moving averages and its closeness to the 52-week low imply that caution is warranted. Investors should weigh the bullish option positioning against the prevailing downtrend and monitor upcoming corporate announcements and macroeconomic developments.
For those considering exposure, the current call option open interest and turnover data provide valuable insight into market consensus and potential price targets. The ₹1,150 strike, with its elevated open interest, may serve as a key resistance level to watch in the coming sessions.
Conclusion
Infosys Ltd’s active call option market ahead of the 26 May expiry underscores a cautiously optimistic outlook among traders, with significant volumes and open interest clustered at strikes just above the current price. While the stock has shown signs of short-term strength, it remains technically challenged and near its yearly lows. Investors should remain vigilant, balancing the bullish signals from options activity with broader market and company fundamentals before making strategic decisions.
