Put Option Trading Highlights
Among the most actively traded put options for Infosys, contracts with strike prices of ₹1,580 and ₹1,600 have dominated volumes. The ₹1,600 strike put option recorded 2,663 contracts traded, generating a turnover of approximately ₹249.47 lakhs, while the ₹1,580 strike saw 2,010 contracts traded with a turnover near ₹121.97 lakhs. Open interest figures further underscore investor focus, with 7,310 contracts outstanding at the ₹1,600 strike and 2,897 at ₹1,580.
The underlying stock price of Infosys stood at ₹1,590.10 on 16 December 2025, positioning the ₹1,600 strike slightly out-of-the-money and the ₹1,580 strike just below the current market price. This concentration of put option activity near the prevailing share price suggests a strategic interest in downside protection or speculative bearish bets as expiry nears.
Price and Market Context
Infosys's share price experienced a decline of 0.98% on the day, underperforming its sector by 0.47% and the broader Sensex by 0.61%. The stock reversed its upward trend after three consecutive days of gains, indicating a potential shift in investor sentiment. Despite this, the share price remains above its 20-day, 50-day, 100-day, and 200-day moving averages, though it is trading below the 5-day moving average, signalling short-term pressure.
Investor participation, as measured by delivery volume, showed a reduction with 28.39 lakh shares delivered on 15 December, down 23.49% compared to the five-day average. Liquidity remains adequate for sizeable trades, with the stock supporting a trade size of approximately ₹17.98 crore based on 2% of the five-day average traded value.
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Implications of Put Option Concentration
The clustering of put option activity at strike prices close to the current market value often indicates a market expectation of potential downside or increased volatility. Investors may be employing these options as hedges against existing long positions in Infosys shares or as speculative instruments anticipating price corrections.
Open interest data reveals that the ₹1,600 strike put option holds the largest outstanding contracts, suggesting that many market participants are positioning for a scenario where the stock price could fall below this level by expiry. The ₹1,580 strike also commands significant open interest, reinforcing the focus on this price range as a critical support zone.
Sector and Market Comparison
Infosys operates within the Computers - Software & Consulting sector, a segment that has shown mixed performance recently. The sector's one-day return stood at -0.73%, slightly better than Infosys's own decline but still negative. The broader Sensex index recorded a more modest fall of 0.37% over the same period, indicating that Infosys's price movement is somewhat more sensitive to sector-specific factors.
With a market capitalisation of approximately ₹6,67,669 crore, Infosys remains a large-cap heavyweight within the Indian equity market. Its liquidity profile supports active trading, which is reflected in the substantial options market activity observed.
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Expiry Patterns and Investor Behaviour
The December 30, 2025 expiry date is a focal point for options traders, with the bulk of put contracts concentrated at strikes near the current share price. This pattern is typical as investors seek to manage risk or capitalise on anticipated price movements before the year-end.
Given the recent downward price movement after a short rally, the put option activity may reflect a cautious market stance. Traders could be using these instruments to hedge against potential declines or to speculate on a correction in Infosys shares.
Additionally, the open interest levels suggest that these positions are not merely short-term trades but may represent more sustained hedging or bearish bets, as contracts remain open rather than being closed out.
Outlook and Considerations for Investors
Investors analysing Infosys should consider the implications of the current options market activity alongside fundamental and technical factors. The stock's position relative to its moving averages indicates mixed signals, with longer-term averages supporting the price while short-term momentum shows pressure.
Put option volumes and open interest near the ₹1,600 and ₹1,580 strikes highlight areas of investor focus that may act as support or resistance in the near term. Monitoring how these levels evolve as expiry approaches will provide insights into market sentiment and potential price trajectories.
Given the stock's liquidity and large-cap status, Infosys remains a key component of the Computers - Software & Consulting sector, with its options market activity offering valuable clues to investor expectations and risk management strategies.
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