Put Option Activity Highlights
On 18 February 2026, Infosys recorded substantial put option volumes concentrated around key strike prices for the 24 February expiry. The most actively traded put was at the 1,380 strike, with 6,196 contracts changing hands, generating a turnover of approximately ₹949.48 lakhs and an open interest of 3,155 contracts. Close behind was the 1,320 strike, which saw 6,759 contracts traded, turnover of ₹346.87 lakhs, and open interest standing at 4,020 contracts.
Other notable strikes included the 1,280 put with 5,460 contracts traded and an open interest of 3,122, and the 1,400 strike with 3,872 contracts traded, turnover of ₹790.66 lakhs, and the highest open interest of 5,685 contracts. The 1,260 strike also attracted attention with 2,430 contracts traded and an open interest of 2,044. These figures indicate a broad-based bearish sentiment across strikes slightly below and above the current underlying price of ₹1,361.
Market Context and Stock Performance
Infosys’s share price has been under pressure, declining by 2.84% on the day, underperforming its sector by 0.9%. The stock touched an intraday low of ₹1,362.6, reflecting investor caution. Notably, Infosys is trading below all major moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a weakening technical trend. Delivery volumes have also fallen by 12.17% compared to the five-day average, suggesting reduced investor participation.
Despite these headwinds, the company maintains a respectable dividend yield of 3.31%, which may provide some income support for long-term holders. Liquidity remains robust, with the stock capable of handling trade sizes up to ₹69.86 crores based on 2% of the five-day average traded value, ensuring ease of entry and exit for institutional investors.
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Investor Sentiment and Hedging Strategies
The elevated put option volumes at strikes near and below the current market price suggest that investors are either positioning for a potential downside or seeking protection against further declines. The concentration of open interest at the 1,400 strike, which is above the current price, indicates that some market participants may be hedging existing long positions or speculating on a pullback.
Such activity is typical ahead of expiry dates when traders adjust their portfolios to manage risk or capitalise on expected volatility. The 24 February expiry is particularly significant as it marks the end of the monthly options cycle, often accompanied by increased trading volumes and price swings.
Infosys’s downgrade from a Buy to a Hold rating on 9 February 2026, reflected in its Mojo Score of 54.0, may have contributed to the cautious stance. The downgrade signals a reassessment of the company’s near-term growth prospects and valuation, prompting investors to adopt a more defensive posture.
Comparative Sector and Market Analysis
While Infosys has declined by 2.11% over the day, the broader Computers - Software & Consulting sector fell by 1.44%, and the Sensex remained nearly flat with a marginal gain of 0.03%. This relative underperformance underscores the stock-specific pressures Infosys faces, possibly linked to earnings concerns or sector rotation.
Given Infosys’s large market capitalisation of ₹5,64,086 crores, its movements often influence sector sentiment. The current bearish option positioning may reflect broader worries about the technology consulting space amid global economic uncertainties and shifting client budgets.
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Outlook and Investor Considerations
Investors should closely monitor the evolving option open interest and price action in Infosys as the 24 February expiry approaches. The heavy put activity at multiple strikes suggests that downside risk is being actively priced in, and volatility may increase in the short term.
Long-term investors may view the current weakness as an opportunity to accumulate shares at more attractive valuations, especially given the company’s consistent dividend yield and dominant market position. However, those with shorter investment horizons or exposure to the stock should consider hedging strategies or reassessing their risk tolerance in light of the recent downgrade and technical weakness.
Market participants should also keep an eye on broader sector trends and global economic indicators that could impact Infosys’s consulting revenues and margins in the coming quarters.
Summary
Infosys Ltd’s recent surge in put option volumes ahead of the 24 February 2026 expiry highlights a cautious market stance, with investors seeking protection or positioning for a potential decline. The stock’s underperformance relative to its sector, combined with a downgrade to Hold and technical weakness below key moving averages, reinforces the bearish sentiment. While the company’s strong market capitalisation and dividend yield provide some support, the near-term outlook remains uncertain, warranting close attention from investors and traders alike.
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