On 20 November 2025, Infosys Ltd (INFY), a leading player in the Computers - Software & Consulting sector, recorded substantial put option volumes concentrated around strike prices of ₹1,540, ₹1,520, and ₹1,500. The underlying stock was valued at ₹1,538.3, closely aligned with these strikes, indicating that market participants are positioning for potential downside or protection near current price levels.
The most active put option was at the ₹1,500 strike, where 3,900 contracts changed hands, generating a turnover of approximately ₹70.5 lakhs. This strike also held the highest open interest among the puts, with 5,802 contracts outstanding. The ₹1,520 strike followed with 3,642 contracts traded and an open interest of 4,011, while the ₹1,540 strike saw 3,450 contracts traded and an open interest of 4,049. The combined turnover for the ₹1,540 strike was notably higher at ₹234.2 lakhs, reflecting a premium on these contracts.
These figures suggest a concentrated focus on downside protection or speculative bearish bets clustered just below and around the current market price. The expiry date of 25 November 2025 is imminent, which often leads to heightened activity as traders adjust positions ahead of contract settlement.
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From a broader market perspective, Infosys’s stock price has shown a slight underperformance relative to its sector and the Sensex index on the day. The stock declined by 0.12%, while the Computers - Software & Consulting sector gained 0.30% and the Sensex rose by 0.17%. Despite this, Infosys has recorded a consecutive gain streak of one day, with a return of -0.23% over this period, indicating a modest retracement.
Technical indicators reveal that the stock price remains above its 5-day, 20-day, 50-day, and 100-day moving averages but is trading below the 200-day moving average. This mixed technical picture may be contributing to the cautious stance reflected in the options market, where investors appear to be hedging against potential near-term declines.
Investor participation has shown signs of moderation, with delivery volume on 19 November 2025 at 56.03 lakh shares, representing a decline of 32.58% compared to the five-day average delivery volume. This reduction in delivery volume suggests a possible decrease in conviction among long-term holders or a shift towards shorter-term trading strategies.
Liquidity remains adequate for sizeable trades, with the stock’s traded value supporting a trade size of approximately ₹35.64 crore based on 2% of the five-day average traded value. This liquidity profile supports active derivatives trading and allows for efficient execution of hedging or speculative positions.
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Infosys’s market capitalisation stands at ₹6,40,297 crore, categorising it firmly as a large-cap stock within the Indian equity market. This stature typically attracts institutional investors who often utilise options for portfolio hedging or tactical positioning. The observed put option activity aligns with such behaviour, where downside protection is sought amid uncertain market conditions.
Examining the strike prices in relation to the underlying value, the clustering of put contracts at ₹1,540, ₹1,520, and ₹1,500 suggests that traders are focusing on a narrow price band just below the current market price. This concentration may indicate expectations of limited downside or a strategic hedge against a potential pullback in the near term.
Given the expiry date is less than a week away, the elevated open interest at these strikes could also reflect rollovers or position adjustments by traders seeking to manage risk or capitalise on volatility. The turnover figures, particularly the ₹234.2 lakhs at the ₹1,540 strike, highlight the premium investors are willing to pay for downside protection at this level.
Overall, the options market activity in Infosys points to a cautious outlook among investors, with a preference for downside risk mitigation. This is consistent with the stock’s recent price behaviour and technical indicators, which present a mixed picture of support and resistance levels.
Investors and traders monitoring Infosys should consider the implications of this put option activity in the context of broader market trends and sector performance. The Computers - Software & Consulting sector has shown resilience, but individual stock dynamics such as those seen in Infosys’s options market provide valuable insights into investor sentiment and risk appetite.
As the 25 November expiry approaches, market participants will be closely watching how these positions evolve and whether the stock price remains within the range suggested by the put option strikes. The interplay between spot price movements and options positioning will be critical in shaping near-term price action for Infosys.
In conclusion, the heavy put option trading in Infosys ahead of the November expiry highlights a significant focus on downside protection or bearish positioning. This activity, combined with the stock’s technical and volume indicators, suggests a market environment where caution prevails despite the company’s large-cap status and sector affiliation.
Investors should remain attentive to developments in both the derivatives and cash markets for Infosys, as these will provide important signals for future price trends and risk management strategies.
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