Rs 1,240 Puts — 0.9% Below Current Price — Draw 2,594 Contracts on Infosys Ltd

Put Options Event and Cash Market Context

On 23 Apr 2026, Infosys Ltd saw significant put option activity concentrated around four strikes expiring on 28 Apr 2026. The most active were the Rs 1,260 puts with 2,646 contracts traded and Rs 1,250 puts with 2,817 contracts, closely followed by Rs 1,240 (2,594 contracts) and Rs 1,200 (3,798 contracts). The total turnover for these strikes ranged from ₹1.48 crores to ₹3.29 crores, indicating substantial premium flow in the put segment.

The stock itself has been under pressure, falling 4.68% over the last two days and closing 0.77% lower on the day, underperforming its sector by 0.98%. It trades near its 52-week low, just 2.92% above the lowest price of Rs 1,215.1. This recent weakness in the cash market provides essential context for interpreting the put activity — is the put buying a reflection of growing bearish conviction or a strategic hedge?

Strike Price Analysis: Moneyness and Distance from Underlying

The Rs 1,240 strike sits approximately 0.9% out-of-the-money (OTM) relative to the current price of Rs 1,251.7, while the Rs 1,260 and Rs 1,250 strikes are in-the-money (ITM) or at-the-money (ATM) respectively. The Rs 1,200 strike is notably further OTM, about 4.2% below the current price.

This distribution of activity across strikes suggests a layered approach by market participants. The concentration of contracts at the Rs 1,260 and Rs 1,250 strikes, which are ATM/ITM, typically signals directional bearish bets or protective hedges for existing long positions. Meanwhile, the sizeable volume at Rs 1,200, a deeper OTM strike, may indicate speculative positioning or put writing strategies.

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

Put options inherently carry ambiguous signals. The heavy activity at ATM and ITM strikes on a stock that has been falling suggests a degree of bearish positioning. Traders may be anticipating further downside or protecting profits from recent gains. However, the presence of significant contracts at the Rs 1,240 and Rs 1,200 strikes, which are OTM, opens the possibility of hedging or put writing.

Given Infosys Ltd is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, the put activity aligns with a cautious stance. The Rs 1,240 strike is close to a technical support zone, which may encourage hedging rather than outright bearish bets. Conversely, the Rs 1,200 strike’s activity could reflect put sellers collecting premium, expecting the stock not to breach that level before expiry — is this a sign of confidence in a floor forming near Rs 1,200?

Open Interest and Contracts Analysis

Open interest (OI) figures provide further insight. The Rs 1,260 strike has an OI of 4,354 contracts, Rs 1,250 has 4,212, Rs 1,240 has 2,659, and Rs 1,200 leads with 5,176 contracts. The ratio of contracts traded to OI is roughly 0.6 for Rs 1,260 and Rs 1,250, and about 1.0 for Rs 1,240, indicating fresh positioning particularly at the Rs 1,240 strike. The Rs 1,200 strike shows a high OI relative to contracts traded, suggesting established positions rather than new bets.

This pattern hints at a mix of fresh put buying at Rs 1,240, possibly for hedging, and put writing or rollovers at Rs 1,200. The sizeable OI at the lower strike may also reflect longer-term protective strategies or premium collection by more bullish participants.

Cash Market Momentum and Technical Alignment

Infosys Ltd has been in a downtrend, trading below all major moving averages, which typically supports bearish interpretations of put buying. However, the recent rise in delivery volume by 88.68% to 1.14 crore shares on 22 Apr 2026 suggests increased investor participation, possibly stabilising the stock near current levels.

The Rs 1,240 put strike roughly corresponds to a support zone just above the 52-week low, which may explain the fresh put buying as a hedge against further declines rather than outright bearish speculation. The thinning delivery volumes earlier in the week could have prompted protective positioning — should investors consider this a sign of cautious risk management or a prelude to deeper weakness?

Delivery Volume and Quality of Participation

Delivery volumes have shown a notable increase recently, with 1.14 crore shares delivered on 22 Apr 2026, up 88.68% from the five-day average. This rise in delivery volume amid a falling stock price suggests that some investors are accumulating or holding positions rather than exiting. This dynamic supports the interpretation that put buying may be partly protective, guarding against short-term downside while maintaining exposure.

Such delivery-backed participation contrasts with purely speculative put buying and indicates a more measured approach to risk management in Infosys Ltd. The interplay between delivery volumes and option activity is a key factor in understanding the market’s stance.

Conclusion: Protective Hedging Dominates Put Activity

The put option activity in Infosys Ltd ahead of the 28 Apr 2026 expiry reveals a complex picture. The concentration of contracts at ATM and ITM strikes on a stock trading near its 52-week low and below all major moving averages suggests a blend of bearish positioning and protective hedging.

However, the fresh put buying at the Rs 1,240 strike, close to a technical support zone, combined with rising delivery volumes, points more strongly towards hedging rather than outright bearish bets. The sizeable open interest at the Rs 1,200 strike may reflect put writing, signalling some confidence that the stock will hold above that level.

Overall, the data indicates that market participants are managing risk carefully in a volatile environment rather than positioning solely for a sharp decline — should investors interpret this as a signal to hedge or to prepare for further downside?

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