Infosys Sees Significant Put Option Activity Ahead of December Expiry

Put Option Trading Highlights

Data from recent trading sessions reveals that Infosys Ltd (INFY) has witnessed substantial volumes in put options, particularly at strike prices of ₹1,500 and ₹1,560, both expiring on 30 December 2025. The ₹1,560 strike price recorded 1,217 contracts traded, generating a turnover of approximately ₹150.66 lakhs, with an open interest of 2,162 contracts. Meanwhile, the ₹1,500 strike price saw 1,163 contracts exchanged, with turnover near ₹54.20 lakhs and open interest standing at 4,454 contracts.

This concentration of activity at these strike prices, close to the current underlying value of ₹1,564.50, suggests that market participants are positioning for potential downside protection or speculative plays in the near term. The open interest figures indicate a significant number of outstanding contracts, which could influence price dynamics as expiry approaches.

Underlying Stock Performance and Market Context

Infosys shares have been trading above their key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a generally positive technical trend. On 1 December 2025, the stock recorded a modest gain of 0.27%, slightly outperforming the sector return of 0.21% but marginally trailing the Sensex’s 0.32% rise.

Despite this, investor participation has shown signs of moderation. Delivery volume on 28 November 2025 was 27.63 lakh shares, representing a decline of 58.39% compared to the five-day average delivery volume. This reduction in delivery volume may reflect a cautious approach by investors amid mixed signals from the derivatives market.

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting transactions up to approximately ₹30.41 crore based on 2% of the five-day average traded value. This liquidity profile supports active options trading and facilitates hedging strategies.

Interpreting the Put Option Activity

The prominence of put options at strike prices near the current market value of Infosys shares points to a nuanced market outlook. Traders may be employing these options as a hedge against potential declines, especially given the proximity of the ₹1,560 and ₹1,500 strikes to the prevailing stock price. The relatively high open interest at ₹1,500, in particular, suggests a sizeable base of investors seeking downside protection or anticipating a price correction.

Put options serve as a tool for risk management, allowing holders to limit losses if the stock price falls below the strike price. The expiry date of 30 December 2025 is significant as it marks the end of the calendar year, a period often associated with portfolio rebalancing and strategic positioning ahead of the new financial year.

While the underlying stock’s technical indicators remain positive, the options market activity reveals a layer of caution. This duality is not uncommon in large-cap stocks like Infosys, where institutional investors balance growth prospects with risk mitigation.

Sector and Market Comparisons

Infosys operates within the Computers - Software & Consulting industry, a sector that has shown steady performance in recent sessions. The stock’s market capitalisation stands at approximately ₹6,47,997 crore, categorising it firmly as a large-cap entity. Its one-day return of 0.27% aligns closely with sector movements, underscoring its role as a bellwether within the technology space.

Comparatively, the Sensex’s 0.32% gain on the same day reflects broader market optimism, which has not fully translated into aggressive buying in Infosys shares, as evidenced by the subdued delivery volumes. This divergence may be influencing the increased put option interest, as investors seek to hedge amid uncertain near-term catalysts.

Expiry Patterns and Market Implications

The 30 December 2025 expiry date for these put options is a critical juncture for traders and investors alike. As the expiry approaches, open interest levels and trading volumes often influence price volatility. The concentration of open interest at the ₹1,500 and ₹1,560 strikes may lead to price support or resistance levels forming around these points, as option writers and holders adjust their positions.

Market participants will be closely monitoring the stock’s price action in the coming weeks to gauge whether the bearish sentiment implied by the put option activity materialises or if the underlying strength in the stock’s moving averages prevails. The interplay between the derivatives market and spot price movements will be a key factor in shaping investor sentiment heading into the new year.

Conclusion: Balancing Caution with Confidence

Infosys Ltd’s derivatives market activity highlights a complex investment landscape where cautious positioning coexists with underlying technical strength. The significant put option volumes at strike prices near the current market value suggest that investors are hedging against potential downside risks while maintaining exposure to the stock’s longer-term prospects.

For market watchers and investors, understanding these dynamics is essential for informed decision-making. The stock’s liquidity and steady trading volumes provide a conducive environment for both speculative and hedging strategies, making Infosys a noteworthy case study in the evolving interplay between equity and options markets.

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