Infosys Ltd Sees Robust Call Option Activity Amid Mixed Technical Signals

Robust Call Option Volumes Highlight Investor Optimism

On 10 February 2026, Infosys recorded significant call option volumes, particularly at the 1500 and 1600 strike prices expiring on 24 February 2026. The 1500 strike call options saw 4,624 contracts traded, generating a turnover of ₹660.49 lakhs, while the 1600 strike calls had 4,266 contracts traded with a turnover of ₹117.57 lakhs. The open interest for these strikes stood at 8,213 and 16,449 contracts respectively, indicating strong investor positioning ahead of expiry.

With the underlying stock price at ₹1500.6, the 1500 strike calls are at-the-money, while the 1600 strike calls are out-of-the-money, suggesting that traders are betting on a price appreciation beyond the current levels within the next two weeks. The substantial open interest at the 1600 strike further underscores a bullish outlook, as investors anticipate a rally surpassing this level.

Price and Trend Analysis: Mixed Signals

Infosys outperformed its sector by 0.51% on the day, registering a modest gain of 0.37% compared to the sector’s 0.50% and Sensex’s 0.32% returns. Notably, the stock reversed a four-day losing streak, trading within a narrow range of ₹14, which may indicate consolidation before a directional move.

However, the stock remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling that the short- to long-term technical trend is still bearish. This divergence between option market optimism and technical indicators suggests that investors are positioning for a potential turnaround, possibly driven by upcoming earnings or sectoral catalysts.

Investor participation has declined, with delivery volumes falling by 29.04% to 57.34 lakh shares on 9 February compared to the five-day average. This reduced participation could imply cautiousness among long-term holders, even as speculative interest in call options rises.

Fundamental and Market Positioning Context

Infosys, with a market capitalisation of ₹6,07,005 crore, remains a large-cap heavyweight in the Indian IT sector. The company currently holds a Mojo Score of 60.0 and a Mojo Grade of Hold, downgraded from Buy on 9 February 2026. This adjustment reflects a more cautious stance amid recent price pressures and sector volatility.

The stock offers a relatively attractive dividend yield of 3.08%, which may appeal to income-focused investors despite the recent technical weakness. Liquidity remains robust, with the stock capable of handling trade sizes up to ₹45.35 crore based on 2% of the five-day average traded value, ensuring ease of entry and exit for institutional and retail participants alike.

Expiry Patterns and Strike Price Preferences

The concentration of call option activity at the 1500 and 1600 strike prices for the 24 February expiry suggests that traders are positioning for a near-term price recovery. The 1500 strike, being at-the-money, is the most actively traded, indicating hedging or speculative strategies close to the current market price.

Meanwhile, the sizeable open interest at the 1600 strike reflects a more aggressive bullish stance, with investors anticipating a price rise of approximately 6.5% from current levels within the next two weeks. This could be driven by expectations of positive earnings results, contract wins, or favourable sector developments.

Such expiry patterns are typical in a market where investors seek to capitalise on short-term volatility while managing risk through defined strike prices and expiry dates.

Implications for Investors and Traders

The surge in call option volumes and open interest at key strike prices signals a growing bullish sentiment among traders, despite the stock’s current technical challenges. Investors should weigh this optimism against the broader market context and Infosys’s recent downgrade to a Hold rating.

For traders, the active options market offers opportunities to capitalise on potential price swings through defined risk strategies such as buying calls or implementing spreads. Meanwhile, long-term investors may prefer to monitor fundamental developments and sector trends before increasing exposure.

Given the stock’s narrow trading range and falling delivery volumes, a decisive move above the 1600 level in the coming weeks could validate the bullish positioning seen in the options market. Conversely, failure to breach this resistance may lead to consolidation or further downside.

Sector and Market Comparison

Infosys’s performance today, marginally outperforming its sector and the Sensex, reflects resilience amid a mixed market environment. The Computers - Software & Consulting sector continues to face headwinds from global macroeconomic uncertainties and currency fluctuations, which may temper near-term growth prospects.

Nonetheless, Infosys’s strong market capitalisation and dividend yield provide a cushion for investors, while the active options market activity highlights the stock’s continued relevance as a key trading and investment vehicle within the IT space.

Conclusion

In summary, Infosys Ltd’s elevated call option activity ahead of the 24 February 2026 expiry reveals a cautiously optimistic market stance. While technical indicators remain subdued and the stock has been downgraded to Hold, the options market suggests anticipation of a price recovery beyond current levels.

Investors and traders should closely monitor price action around the 1500 and 1600 strike levels, as well as upcoming corporate developments, to gauge the sustainability of this bullish positioning. The interplay between fundamental factors and market sentiment will be crucial in shaping Infosys’s trajectory in the weeks ahead.

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