Infosys Ltd Sees Surge in Call Option Activity Ahead of February Expiry

Call Option Activity Highlights

The most active call options for Infosys are concentrated around strike prices ranging from ₹1,500 to ₹1,600, all expiring on 24 February 2026. The highest volume of contracts traded was at the ₹1,600 strike, with 11,311 contracts exchanged, generating a turnover of ₹478.68 lakhs and an open interest of 15,133 contracts. This is closely followed by the ₹1,560 strike, which saw 6,095 contracts traded and an open interest of 7,751.

Other notable strikes include ₹1,540 with 5,543 contracts traded and an open interest of 9,222, and ₹1,500 with 5,093 contracts traded and an open interest of 3,983. The cumulative turnover across these strikes exceeds ₹2,350 lakhs, underscoring strong investor interest in call options at and above the current underlying price.

Interpreting the Bullish Positioning

Despite Infosys trading slightly below key moving averages—including the 5-day, 20-day, 50-day, 100-day, and 200-day averages—the heavy call option volumes at strikes above the current price suggest that market participants are positioning for a rebound or a bullish breakout in the near term. The ₹1,600 strike, in particular, represents a roughly 6.7% premium over the current spot price, indicating optimism for a meaningful upside within the next few weeks.

Open interest data further supports this view, with the highest concentration at the ₹1,600 strike, implying that traders are not only buying calls but also holding onto existing positions, potentially anticipating a rally. This is noteworthy given the stock’s recent three-day losing streak, which has resulted in a cumulative decline of 9.88%.

Price and Volume Context

Infosys’s intraday low touched ₹1,480 on 6 February 2026, marking a 2.64% drop from the previous close. The stock’s day change was -1.61%, slightly outperforming the sector’s 2.00% decline but underperforming the Sensex’s modest 0.40% fall. Delivery volumes have also contracted, with a 16.03% decrease against the five-day average, signalling reduced investor participation amid the recent downtrend.

However, the stock maintains a healthy dividend yield of 3.03%, which may continue to attract income-focused investors despite short-term price weakness. Liquidity remains robust, with the stock capable of supporting trade sizes up to ₹40.65 crore based on 2% of the five-day average traded value.

Mojo Score Upgrade and Market Sentiment

Infosys’s MarketsMOJO score currently stands at 70.0, reflecting a Buy rating, upgraded from Hold on 22 December 2025. This upgrade is supported by the company’s strong fundamentals and market positioning within the Computers - Software & Consulting sector. The market cap grade of 1 further confirms its status as a large-cap stock with significant institutional interest.

The upgrade aligns with the observed option market activity, where traders appear to be anticipating a positive turnaround despite recent price softness. The combination of a strong fundamental outlook and bullish option positioning suggests that investors are preparing for a potential recovery or positive catalyst in the near term.

Expiry Patterns and Strategic Implications

The 24 February 2026 expiry date is pivotal, as the concentration of call options at strikes above the current price indicates a strategic bet on a rally within the next three weeks. Traders utilising these call options may be seeking leveraged exposure to Infosys’s upside potential while limiting downside risk to the premium paid.

Given the stock’s current trading below all major moving averages, a break above the ₹1,560 to ₹1,600 range could trigger technical buying and validate the bullish sentiment embedded in the options market. Conversely, failure to breach these levels may result in option premiums decaying as expiry approaches.

Investor Takeaways and Outlook

For investors and traders, the current scenario presents a nuanced picture. The recent price weakness and falling investor participation caution against aggressive long positions. However, the robust call option activity at strikes above the current price signals that a segment of the market is positioning for a rebound, possibly anticipating positive earnings, contract wins, or sector tailwinds.

Given Infosys’s large-cap status and strong dividend yield, it remains an attractive stock for long-term investors seeking steady income and growth. Short-term traders may find opportunities in the options market to capitalise on volatility and directional moves around the February expiry.

Monitoring open interest changes, strike price concentrations, and underlying price action will be critical in the coming weeks to gauge whether bullish expectations materialise or if the recent downtrend persists.

Comparative Sector and Market Performance

Infosys’s performance today, with a 1.55% decline, slightly outperformed the broader Computers - Software & Consulting sector, which fell 2.00%, and the Sensex, which dipped 0.40%. This relative resilience, despite the downtrend, may reflect underlying confidence in the company’s fundamentals and growth prospects.

Investors should also consider the broader macroeconomic environment and IT sector dynamics, including global demand for software services, currency fluctuations, and competitive pressures, which could influence Infosys’s near-term trajectory.

Conclusion

Infosys Ltd’s active call option market ahead of the 24 February 2026 expiry reveals a strong bullish undertone despite recent price declines and technical weakness. The concentration of open interest and high volumes at strikes between ₹1,540 and ₹1,600 suggest that investors are positioning for a potential upside within the next few weeks.

While the stock faces short-term headwinds, its upgraded Mojo Grade of Buy, large market capitalisation, and attractive dividend yield provide a solid fundamental base. Market participants should closely watch price action around key resistance levels and option expiry dynamics to inform their trading and investment decisions.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →