Put Option Activity Highlights
On 6 February 2026, Infosys emerged as the most active stock in put options trading, with a pronounced concentration of contracts across multiple strike prices near the current underlying value of ₹1,499.6. The expiry date for these options is 24 February 2026, indicating that traders are positioning themselves for potential downside or seeking protection over the coming weeks.
The most heavily traded put options include strikes at ₹1,420, ₹1,440, ₹1,460, ₹1,480, and ₹1,500. The highest volume was recorded at the ₹1,500 strike, with 6,880 contracts traded, generating a turnover of ₹1153.088 lakhs and an open interest of 5,073 contracts. This is closely followed by the ₹1,480 strike, which saw 5,622 contracts traded and a turnover of ₹788.42928 lakhs.
The substantial open interest at these strikes, particularly at ₹1,500 and ₹1,440 (3,476 contracts), suggests that market participants are actively hedging or speculating on a decline from the current price level. The clustering of activity just below and around the current market price points to a cautious outlook, with traders possibly anticipating a correction or increased volatility in the near term.
Price and Technical Context
Infosys has been under pressure recently, with the stock falling by 1.45% on the day and touching an intraday low of ₹1,480, down 2.64%. Over the past three trading sessions, the stock has declined by nearly 9.88%, underperforming its sector, which fell 2.00%, and the broader Sensex, which was down 0.40% on the same day.
Technically, Infosys is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a bearish trend. This technical weakness aligns with the surge in put option activity, reinforcing the view that investors are bracing for further downside or are actively hedging existing long positions.
Investor participation has also waned, with delivery volumes dropping by 16.03% against the five-day average, indicating reduced conviction among buyers. Despite this, the stock maintains a relatively high dividend yield of 3.03%, which may provide some support to long-term holders amid the current volatility.
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Fundamental and Market Positioning
Infosys Ltd, with a market capitalisation of ₹6,16,229 crores, remains a large-cap stalwart in the Indian IT sector. The company’s recent upgrade by MarketsMOJO from Hold to Buy, accompanied by a Mojo Score of 70.0, reflects improved fundamentals and growth prospects. However, the current market dynamics suggest that investors are balancing this optimism with caution, as evidenced by the active put option trades.
The put option turnover totals over ₹3,069 lakhs across the five key strikes, indicating substantial liquidity and interest in downside protection. The open interest figures, particularly at the ₹1,500 strike, are noteworthy as they represent a sizeable pool of contracts that could influence price movements as expiry approaches.
Such heavy put activity often signals hedging by institutional investors or speculative bets on a near-term correction. Given Infosys’s recent price weakness and technical breakdown, this positioning is consistent with a market environment where participants seek to mitigate risk amid uncertainty.
Expiry Patterns and Investor Behaviour
The 24 February 2026 expiry date is critical, as it falls within a month of the current trading date. This short-term horizon suggests that traders are actively managing risk around upcoming earnings announcements, macroeconomic data releases, or sector-specific developments that could impact Infosys’s stock price.
Put options at strikes slightly below the current market price, such as ₹1,440 and ₹1,460, have seen robust volumes and open interest, indicating that investors are preparing for potential downside scenarios while maintaining flexibility. The concentration of activity near the ₹1,500 strike, which is close to the current price, also points to a hedging strategy designed to limit losses if the stock declines further.
Moreover, the liquidity of Infosys shares supports sizeable option trades, with the stock’s average traded value allowing for trade sizes up to ₹40.65 crores without significant market impact. This facilitates active participation by institutional players and sophisticated traders in the options market.
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Implications for Investors
For investors, the surge in put option activity around Infosys signals a need for caution. While the company’s fundamentals remain strong and the recent upgrade is encouraging, the technical weakness and bearish options positioning suggest that downside risks are currently elevated.
Long-term investors may view the current dip as a buying opportunity, especially given the attractive dividend yield of 3.03%. However, those with shorter investment horizons or concentrated exposure should consider protective strategies, including the use of put options or stop-loss orders, to mitigate potential losses.
Traders and portfolio managers should closely monitor open interest changes and volume trends in the options market, as these can provide early signals of shifts in market sentiment. The expiry on 24 February 2026 will be a key date to watch, as option unwinding or rollovers could lead to increased volatility in Infosys shares.
Overall, the current landscape reflects a nuanced view of Infosys, balancing solid fundamentals against near-term technical challenges and market uncertainty.
Sector and Market Comparison
Within the Computers - Software & Consulting sector, Infosys’s recent performance has been inline with peers, though its three-day decline of nearly 10% is sharper than the sector average. The Sensex’s modest 0.40% drop on the day contrasts with Infosys’s 1.45% fall, highlighting stock-specific pressures.
Given the sector’s sensitivity to global IT spending trends and currency fluctuations, the heightened put option activity may also reflect broader concerns about macroeconomic headwinds impacting earnings growth. Investors should weigh these factors alongside company-specific developments when making allocation decisions.
Conclusion
Infosys Ltd’s heavy put option trading ahead of the 24 February 2026 expiry underscores a cautious market stance amid recent price weakness and technical deterioration. While the company’s fundamentals and dividend yield remain attractive, the options market signals increased hedging and bearish sentiment that investors should carefully consider.
Monitoring the evolving options landscape, alongside fundamental and technical indicators, will be crucial for navigating the stock’s near-term trajectory. As expiry approaches, volatility may rise, presenting both risks and opportunities for informed market participants.
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