Put Option Activity Highlights
On 29 December 2025, Infosys witnessed a substantial volume of put option contracts traded for the expiry dated 30 December 2025. Specifically, 3,707 contracts were exchanged at the 1640 strike price, generating a turnover of approximately ₹10.97 lakhs. The open interest for these puts stands at 5,032 contracts, indicating a significant build-up of positions ahead of expiry.
The underlying stock price of Infosys was recorded at ₹1,661.3, placing the 1640 strike price slightly below the current market level. This positioning suggests that market participants may be hedging against potential downside risks or speculating on a near-term correction.
Price and Market Context
Infosys outperformed its sector on the day, registering a 0.24% gain compared to the Computers - Software & Consulting sector’s 0.02% rise and the broader Sensex’s 0.11% increase. This performance followed a three-day period of consecutive declines, marking a potential trend reversal. The stock traded within a narrow range of ₹15.1, reflecting subdued volatility despite the active options market.
Technical indicators show that Infosys is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a generally positive medium to long-term trend. However, investor participation appears to be waning, with delivery volumes on 26 December falling by 81.65% compared to the five-day average, suggesting reduced conviction among shareholders.
Liquidity remains adequate for sizeable trades, with the stock’s traded value supporting transactions up to ₹34.07 crores based on 2% of the five-day average traded value. This liquidity profile supports active derivatives trading and facilitates efficient price discovery.
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Interpreting the Put Option Interest
The concentration of put option activity at the 1640 strike price, just below the current market price, may indicate a hedging strategy by institutional investors or traders anticipating a short-term pullback. Put options provide a form of insurance against declines, and the elevated open interest suggests that a sizeable number of market participants are positioning for downside protection or speculative bearish bets.
Given the proximity of the strike price to the underlying value, these puts are near-the-money, which typically attract higher premiums and greater trading interest. The expiry date being imminent adds urgency to these positions, as traders seek to capitalise on or guard against price movements in the final days of the contract.
Sector and Market Comparisons
Within the Computers - Software & Consulting sector, Infosys stands out for its active derivatives market engagement. The sector’s modest 0.02% gain contrasts with Infosys’s 0.24% rise, highlighting the stock’s relative strength. However, the broader market’s 0.11% increase suggests that Infosys’s put option activity is not solely reflective of general market sentiment but may be driven by company-specific factors or technical considerations.
Infosys’s market capitalisation of ₹6,71,271 crores classifies it as a large-cap entity, attracting significant institutional interest and making it a focal point for hedging and speculative strategies in the options market.
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Expiry Patterns and Market Implications
The December 2025 expiry is a critical juncture for options traders, often accompanied by heightened volatility and strategic repositioning. The active put option trading in Infosys ahead of this expiry suggests that market participants are closely monitoring the stock’s near-term trajectory.
While the stock’s technical indicators remain positive, the put option interest points to a cautious outlook among some investors. This duality reflects the complex dynamics in play, where bullish medium-term trends coexist with short-term hedging or speculative bearish positioning.
Investors and traders should consider these factors when analysing Infosys’s price movements and market sentiment. The interplay between spot price performance and derivatives activity offers valuable insights into underlying market psychology and potential price scenarios.
Conclusion
Infosys’s prominence in put option trading ahead of the December 2025 expiry highlights the stock’s significance in the derivatives market and the nuanced views held by investors. The concentration of activity at the 1640 strike price, combined with the stock’s recent price behaviour and sector context, underscores a cautious but engaged market stance.
As expiry approaches, monitoring open interest changes and price action will be crucial for understanding the evolving sentiment around Infosys. This information can aid investors in making informed decisions regarding risk management and potential opportunities within the Computers - Software & Consulting sector.
Additional Considerations for Investors
Given the large-cap status of Infosys and its liquidity profile, the stock remains a key component of many portfolios. The current derivatives activity may reflect broader market themes such as sector rotation, profit booking, or anticipation of corporate developments. Investors should weigh these elements alongside fundamental and technical analyses to form a comprehensive view.
Overall, the active put option interest in Infosys serves as a barometer of market caution and strategic positioning, providing a window into investor expectations as the year draws to a close.
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