Rs 1,200 and Rs 1,240 Puts Draw Heavy Interest on Infosys Ltd Ahead of 30 March Expiry

Put Options Event and Cash Market Context

On 24 March 2026, the most active put contracts on Infosys Ltd were at strike prices Rs 1,200 and Rs 1,240, both expiring on 30 March 2026. The Rs 1,240 strike saw 2,386 contracts traded with a turnover of ₹159.86 lakhs and open interest of 4,285 contracts. Meanwhile, the Rs 1,200 strike recorded 2,378 contracts traded, turnover of ₹66.49 lakhs, and open interest of 3,200 contracts. The underlying stock closed at Rs 1,257.90, placing the Rs 1,240 puts slightly out-of-the-money (OTM) by 1.4% and the Rs 1,200 puts further OTM by 4.7%.

This level of activity, especially so close to expiry, indicates concentrated positioning. The question is whether this reflects bearish sentiment, protective hedging, or put writing strategies — what does the full data set reveal about the intent behind these trades?

Strike Price Analysis: Moneyness and Intent

The Rs 1,240 strike is just 17 points below the current price, making it a near-ATM put, while the Rs 1,200 strike is more distinctly OTM. Typically, ATM puts bought during a falling market signal bearish positioning, whereas OTM puts on a rising stock often serve as insurance against a pullback. Given Infosys Ltd has gained over 3% in three days, the Rs 1,200 puts appear to be a hedge against a potential correction rather than a directional bet on a sharp decline.

Moreover, the Rs 1,240 puts, with higher open interest and turnover, suggest a more active role in the options market. The proximity of this strike to the current price and the expiry date implies that traders may be positioning for limited downside protection or adjusting existing positions rather than outright bearish speculation.

Interpreting the Put Activity: Multiple Perspectives

Put option activity can be ambiguous. One interpretation is that buyers of these puts are bearish, expecting the stock to fall below these strikes by expiry. However, this would require a reversal of the recent rally, which has seen the stock rise steadily. Alternatively, the activity could represent hedging by investors who hold long positions in the stock and seek to protect gains from a potential pullback — a common strategy when the stock is above short-term moving averages but below longer-term ones.

Another possibility is put writing, where traders sell puts to collect premium, betting the stock will stay above the strike price. However, the relatively high turnover and open interest on the buy side suggest fresh buying rather than predominantly put selling. The Rs 1,240 strike’s open interest of 4,285 contracts, combined with 2,386 contracts traded on the day, points to active accumulation rather than premium collection.

Open Interest and Contracts: Fresh Positioning or Adjustments?

The ratio of contracts traded to open interest is approximately 0.56 for the Rs 1,240 strike and 0.74 for the Rs 1,200 strike, indicating significant fresh activity. This suggests that traders are initiating new positions rather than merely rolling over or closing existing ones. The open interest levels are substantial, reflecting established interest at these strikes, but the fresh volumes imply that the market is actively repositioning ahead of expiry.

Such fresh positioning at strikes below the current price, especially with the stock on a short-term uptrend, aligns more with hedging or cautious positioning than outright bearish conviction — how does this align with the broader technical and delivery volume context?

Cash Market Context: Technicals and Delivery Volumes

Infosys Ltd currently trades above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This mixed technical picture suggests short-term strength amid longer-term resistance. The Rs 1,240 put strike is close to the 5-day MA, while the Rs 1,200 strike lies further below, near a potential support zone.

Delivery volumes on 23 March rose by 6.95% to 76.57 lakh shares compared to the 5-day average, indicating rising investor participation. However, the stock remains 3.54% above its 52-week low of Rs 1,215.10, showing it is still relatively close to recent lows. The rally over the past three days, with a 3.19% gain, has not yet been fully confirmed by sustained technical strength, which may explain why investors are seeking downside protection through puts.

Conclusion: Protective Hedging More Likely Than Bearish Bet

The combination of rising stock price, OTM put strikes, significant fresh put buying, and mixed technical indicators points towards hedging as the most plausible explanation for the heavy put activity on Infosys Ltd. Investors appear to be protecting recent gains against a possible short-term pullback rather than positioning for a sharp decline. While outright bearish bets cannot be ruled out entirely, the data suggests caution rather than conviction.

Put writing seems less likely given the volume and open interest patterns, which indicate active accumulation of puts rather than premium collection. The proximity of expiry on 30 March adds urgency to these positions, reflecting tactical adjustments rather than long-term directional bets — should investors consider hedging strategies in light of this nuanced options activity?

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