Surge in Put Option Volumes and Open Interest
Data from the derivatives market reveals that Infosys (INFY) put options expiring on 30 June 2026 have attracted significant trading interest, with multiple strike prices registering thousands of contracts traded. The most active put strikes include 1230, 1220, 1250, 1180, and 1100, cumulatively accounting for over 18,000 contracts traded on the day.
Specifically, the 1230 strike saw 5,359 contracts traded, generating a turnover of ₹731.40 lakhs and an open interest of 1,934 contracts. The 1220 strike followed closely with 4,111 contracts traded and a turnover of ₹489.70 lakhs, while the 1250 strike recorded 3,198 contracts traded with a turnover of ₹532.53 lakhs. Lower strikes such as 1180 and 1100 also showed robust activity, with 2,265 and 3,550 contracts traded respectively.
This concentrated put option activity at strikes ranging from ₹1100 to ₹1250, surrounding the current underlying price of ₹1,222.80, suggests that market participants are positioning for potential downside or seeking protection against further declines in Infosys shares.
Price Action and Sector Context
Infosys shares have underperformed the broader IT sector and benchmark indices on 3 June 2026, closing down 3.73% on the day. The stock opened with a gap down of 2.26% and touched an intraday low of ₹1,227, reflecting heightened selling pressure. Despite outperforming the IT software sector by 0.56%, Infosys lagged behind the Sensex, which declined by 0.94%.
The IT software sector itself has been under pressure, falling 3.98% amid concerns over global demand and margin pressures. Infosys’ share price remains above its 5-day, 20-day, and 50-day moving averages but below the longer-term 100-day and 200-day averages, indicating a mixed technical picture with potential resistance at higher levels.
Investor participation has risen notably, with delivery volumes on 2 June reaching 2.2 crore shares, a 64.07% increase over the five-day average. This heightened activity underscores the market’s focus on Infosys amid broader sector volatility.
Bearish Positioning and Hedging Implications
The elevated open interest in put options at strikes near and below the current market price points to a growing bearish sentiment or strategic hedging by institutional investors and traders. The 1100 strike, with an open interest of 3,604 contracts, is particularly noteworthy as it represents a significant level of downside protection or speculative bearish bets.
Put options at the 1230 and 1250 strikes, which are slightly out-of-the-money relative to the current price, also indicate that investors are bracing for potential volatility or a correction in the near term. The substantial turnover in these strikes, exceeding ₹500 lakhs each, highlights active risk management and speculative positioning ahead of the June expiry.
Such activity often precedes periods of increased price volatility, as option writers and holders adjust their positions in response to evolving market conditions. The combination of high put volumes and open interest suggests that market participants are either hedging existing long exposures or speculating on a downward move in Infosys shares.
Mojo Score Upgrade Reflects Cautious Optimism
Despite the bearish option activity, Infosys’ Mojo Score has improved to 60.0, upgrading its Mojo Grade from Sell to Hold as of 13 April 2026. This reflects a tempered outlook based on fundamental and technical factors, signalling that while caution is warranted, the stock is not yet in a strong sell territory.
Infosys remains a large-cap heavyweight in the Computers - Software & Consulting sector, with a market capitalisation of ₹5,15,576 crore. The Hold rating suggests that investors should monitor developments closely, balancing the risks indicated by derivatives activity with the company’s underlying business strength and sector positioning.
Expiry Patterns and Strategic Considerations
The expiry date of 30 June 2026 is a critical juncture for Infosys options traders. The clustering of put option open interest and volumes around strikes from ₹1100 to ₹1250 indicates that these levels may act as key support or resistance zones in the coming weeks. Market participants will be watching for price reactions near these strikes to gauge the strength of bearish or bullish momentum.
Investors and traders should also consider the broader macroeconomic environment, including global IT spending trends and currency fluctuations, which could influence Infosys’ earnings outlook and share price trajectory. The current derivatives positioning suggests a cautious stance, with many opting for downside protection amid uncertain near-term catalysts.
Conclusion: Navigating Increased Put Option Activity
Infosys’ heavy put option activity ahead of the June expiry highlights a market environment characterised by increased hedging and bearish positioning. While the stock’s fundamental outlook remains stable enough to warrant a Hold rating, the derivatives market signals caution as investors prepare for potential volatility.
For investors, this underscores the importance of closely monitoring option market dynamics alongside price action and sector trends. The interplay between put option volumes, open interest, and strike price concentrations provides valuable insights into market sentiment and risk appetite, aiding in more informed decision-making during this critical period.
