Infosys Sees Heavy Put Option Activity Ahead of December Expiry

Put Option Activity Concentrated Near Current Market Levels

Infosys, a leading player in the Computers - Software & Consulting sector, has recorded substantial put option volumes for contracts expiring on 30 December 2025. The underlying stock price stood at ₹1,654.10 during this period, with the most active put options clustered around strike prices of ₹1,620, ₹1,640, and ₹1,660. These strikes are closely aligned with the current market value, indicating that market participants are positioning themselves for potential downside or seeking protection against near-term volatility.

The put option with a strike price of ₹1,640 saw the highest number of contracts traded, totalling 5,295 contracts. This was followed by the ₹1,660 strike with 3,140 contracts and the ₹1,620 strike with 3,049 contracts. The turnover figures for these strikes were also notable, with ₹142.965 lakhs for the ₹1,640 strike, ₹208.8728 lakhs for ₹1,660, and ₹29.75824 lakhs for ₹1,620. Open interest data further supports the prominence of these strikes, with 5,539 contracts open at ₹1,640, 4,134 at ₹1,660, and 6,663 at ₹1,620.

Market Context and Stock Performance

Infosys is classified as a large-cap stock with a market capitalisation of approximately ₹6,76,359 crores. The stock has experienced a modest decline over the past two days, registering a cumulative fall of 1.87%. Despite this, it continues to trade above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling underlying technical support.

Trading activity has been characterised by a narrow price range of ₹12, reflecting limited intraday volatility. However, investor participation has shown signs of contraction, with delivery volumes on 23 December falling by 57.85% compared to the five-day average. Liquidity remains adequate, with the stock capable of supporting trade sizes up to ₹37.54 crores based on 2% of the five-day average traded value.

Implications of Put Option Concentration

The clustering of put option activity near the current stock price suggests that market participants are either hedging existing long positions or speculating on a potential downward move in Infosys shares. The strike prices chosen indicate a focus on downside protection within a relatively tight price band, consistent with the stock’s recent narrow trading range.

Open interest levels at these strikes provide insight into the persistence of these positions, with the ₹1,620 strike showing the highest open interest, signalling a significant volume of outstanding contracts that could influence price dynamics as expiry approaches. The sizeable turnover at the ₹1,660 strike also points to active trading interest in options slightly above the current market price, possibly reflecting a hedging strategy against minor pullbacks.

Sector and Benchmark Comparison

Infosys’s one-day return of -0.83% contrasts with the Computers - Software & Consulting sector’s decline of 0.36% and the Sensex’s marginal gain of 0.12%. This relative underperformance may be contributing to the cautious sentiment reflected in the options market. The stock’s ability to maintain levels above key moving averages, however, indicates that longer-term technical support remains intact despite short-term pressures.

Investor caution is further evidenced by the drop in delivery volumes, which may suggest reduced conviction among buyers or a wait-and-see approach ahead of the expiry date. The liquidity profile supports continued active trading, allowing for sizeable transactions without significant market impact.

Expiry Patterns and Market Sentiment

The 30 December 2025 expiry date is a critical juncture for Infosys options traders, with the bulk of put contracts concentrated at strikes close to the current market price. This pattern often reflects a market preparing for potential volatility or price adjustments as the expiry approaches. The open interest figures suggest that many traders are maintaining their positions, which could lead to increased price sensitivity around these strike levels in the final days before expiry.

Such activity is typical in large-cap stocks where institutional investors and hedge funds employ options to manage risk or express directional views. The presence of significant put option volumes may also indicate a hedging overlay on existing long equity positions, aiming to limit downside exposure while retaining upside potential.

Technical and Fundamental Considerations

From a technical perspective, Infosys’s trading above all major moving averages signals a generally positive trend over various time horizons. However, the recent two-day decline and the narrow trading range highlight a phase of consolidation or indecision among investors. This environment often leads to increased options activity as market participants seek to protect gains or position for potential breakouts or breakdowns.

Fundamentally, Infosys remains a dominant player in the software and consulting industry, with a market capitalisation firmly placing it among India’s large-cap stocks. The sector’s overall performance and broader market conditions will continue to influence investor sentiment and options market behaviour in the near term.

Investor Takeaways

For investors and traders, the heavy put option activity in Infosys ahead of the December expiry offers valuable insights into market sentiment and risk management strategies. The concentration of open interest and turnover at strikes near the current price suggests a cautious outlook, with a focus on downside protection.

Those holding long positions may consider the implications of this options activity as part of their portfolio risk assessment, while traders looking to capitalise on volatility could monitor price movements around these key strike levels. The stock’s liquidity and technical positioning provide a supportive backdrop for continued active trading in both the cash and derivatives segments.

Conclusion

Infosys’s derivatives market activity ahead of the 30 December 2025 expiry highlights a nuanced investor approach combining hedging and speculative positioning. The significant put option volumes at strikes closely aligned with the current stock price reflect a market balancing optimism with caution amid a period of limited price movement and reduced delivery volumes. As expiry approaches, these dynamics will be critical to watch for indications of potential price shifts or volatility in one of India’s leading software and consulting companies.

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