Rs 1,050 Puts Draw 2,318 Contracts on Infosys Ltd as Stock Holds Above Key Moving Averages

Put Options Event and Cash Market Context

The most active put strikes for Infosys Ltd on 15 Jul 2026 were at ₹1,050 and ₹1,080, with 2,318 and 3,116 contracts traded respectively for the 28 Jul 2026 expiry. The turnover for these strikes was ₹154.75 lakhs and ₹356.47 lakhs, indicating significant premium flow. The underlying stock price stood at ₹1,080.70, down 1.05% on the day and having fallen 1.82% over the past two sessions. Despite this short-term weakness, the stock remains above its 5-day and 20-day moving averages, though below the 50-day, 100-day, and 200-day averages. Is this put activity signalling protection or a deeper bearish stance?

Strike Price Analysis: Moneyness and Intent

The ₹1,050 put strike sits approximately 2.9% below the current market price, categorising it as out-of-the-money (OTM). The ₹1,080 strike is effectively at-the-money (ATM), just 0.1% below the underlying price. OTM puts are often purchased as insurance against a moderate decline, while ATM puts can indicate more immediate downside expectations. The presence of both strikes in heavy put activity suggests a nuanced positioning rather than a straightforward bearish bet.

Interpreting the Put Activity: Hedging, Bearish Positioning, or Put Writing?

Put options inherently carry ambiguous signals. The ₹1,050 OTM puts likely serve as a hedge for existing long positions, protecting gains amid recent volatility. This interpretation aligns with the stock’s position above short-term moving averages and the modest decline over two days. Conversely, the ₹1,080 ATM puts could reflect some bearish positioning, anticipating a near-term pullback. However, the open interest data tempers this view.

Put writing, or selling puts to collect premium, is another possibility, especially if premiums are high and open interest is substantial. Yet, the open interest at ₹1,050 stands at 7,535 contracts, significantly higher than the 2,318 traded contracts, indicating that much of this activity is fresh buying rather than writing. The ₹1,080 strike has an open interest of 5,098 against 3,116 traded contracts, suggesting a mix of fresh and existing positions. This pattern supports a combination of hedging and cautious bearish bets rather than aggressive put selling.

How does the open interest profile clarify the nature of this put activity?

Open Interest and Contracts Analysis

The ratio of contracts traded to open interest provides insight into the freshness of the positions. At the ₹1,050 strike, the ratio is roughly 0.31 (2,318 contracts traded vs 7,535 OI), indicating that a significant portion of the open interest was already in place, with fresh activity adding to it. For the ₹1,080 strike, the ratio is higher at about 0.61, suggesting more recent positioning. This disparity hints that the ₹1,080 puts may be more directional bets, while the ₹1,050 puts are predominantly hedges.

Moreover, the stock’s recent two-day decline of 1.82% contrasts with the broader sector’s smaller fall of 0.46% and the Sensex’s 0.60% gain, highlighting stock-specific pressure. Yet, the stock’s position above the 5-day and 20-day moving averages suggests short-term technical support remains intact. The ₹1,050 strike roughly aligns with a support zone below the 20-day MA, reinforcing the hedging interpretation for that strike.

Cash Market Context: Momentum and Delivery Volumes

Despite the recent price dip, Infosys Ltd maintains a high dividend yield of 4.45%, which can attract long-term investors. Delivery volumes on 14 Jul were 76.6 lakhs, down 2.01% from the 5-day average, indicating slightly reduced investor participation in the recent decline. This thinning delivery volume may explain why put buyers are seeking protection: the rally lacks strong delivery-backed conviction, making hedging prudent. Is this a signal that investors are cautious despite the stock’s technical resilience?

Conclusion: Protective Hedging Dominates Put Activity

The combined data from strike prices, open interest, and cash market trends suggest that the heavy put activity in Infosys Ltd is primarily protective. The ₹1,050 OTM puts appear to be hedges against a moderate pullback, while the ₹1,080 ATM puts may reflect some cautious bearish bets. Put writing seems less likely given the open interest and turnover patterns. The stock’s position above short-term moving averages and the lack of strong delivery volume support the view that investors are managing risk rather than positioning for a sharp decline.

Considering the mixed signals in put activity and recent price action, should investors be hedging their positions or viewing this as a buying opportunity?

Key Data at a Glance

Disclaimer: Options trading involves significant risk and is not suitable for all investors. The interpretations presented are data-driven observations and do not constitute investment advice.

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