Put Option Activity and Market Context
On 12 December 2025, Infosys Ltd (INFY) recorded a significant volume of put option contracts traded, with 3,857 contracts changing hands at the 1580 strike price for the expiry date of 30 December 2025. This volume corresponds to a turnover of approximately ₹29.68 crores, reflecting substantial investor interest in downside protection or speculative bearish bets. Open interest at this strike stands at 2,729 contracts, indicating a sustained level of outstanding positions that could influence price action as expiry nears.
The underlying stock price of Infosys was ₹1,586.0 on the day of this activity, placing the 1580 strike price slightly out-of-the-money. This positioning suggests that traders are preparing for potential downward price movement or are hedging existing long positions against moderate declines.
Price Performance and Technical Indicators
Infosys’ stock performance on the day showed a decline of 0.83%, underperforming its sector, which fell by 0.13%, and contrasting with the Sensex’s positive return of 0.24%. The stock’s price remains above its 20-day, 50-day, 100-day, and 200-day moving averages, signalling a longer-term uptrend. However, it trades below its 5-day moving average, indicating short-term weakness or consolidation.
Investor participation appears to be waning, with delivery volume on 11 December recorded at 27.7 lakh shares, down nearly 50% compared to the five-day average. This decline in delivery volume may reflect reduced conviction among buyers or a cautious stance ahead of the expiry period.
Liquidity metrics suggest that Infosys is sufficiently liquid to accommodate trades worth ₹24.12 crores based on 2% of the five-day average traded value, supporting active options and equity market participation.
Our latest monthly pick, this Large Cap from Aluminium & Aluminium Products, is outperforming the market! See the analysis that helped our Investment Committee select this winner.
- - Market-beating performance
- - Committee-backed winner
- - Aluminium & Aluminium Products standout
Implications of Put Option Concentration
The concentration of put option activity at the 1580 strike price for the December expiry suggests that market participants are positioning for a potential correction or are seeking to hedge against downside risks. Put options provide the right to sell shares at the strike price, thus offering protection if the stock price falls below that level.
Given the underlying price of ₹1,586, the 1580 strike is close enough to be relevant for hedging strategies, especially for institutional investors or traders with sizeable long exposures. The open interest of 2,729 contracts further indicates that these positions are not merely speculative but may represent genuine risk management efforts.
Such activity often precedes periods of heightened volatility, as traders adjust their portfolios in response to evolving market conditions, earnings expectations, or macroeconomic factors impacting the technology sector.
Sector and Market Comparison
Infosys operates within the Computers - Software & Consulting industry, a sector that has experienced mixed performance recently. While the broader Sensex index showed a modest gain of 0.24% on the day, Infosys’ decline of 0.83% and the sector’s slight fall of 0.13% highlight relative weakness in the stock and its peers.
This divergence may be contributing to the increased put option interest, as investors seek to mitigate risks associated with sector-specific headwinds or company-specific developments.
Infosys’ market capitalisation stands at ₹6,60,772 crores, categorising it as a large-cap stock with significant institutional ownership and analyst coverage. The stock’s liquidity profile supports active trading in both equity and derivatives markets, facilitating the execution of complex hedging or speculative strategies.
Infosys or something better? Our SwitchER feature analyzes this large-cap Computers - Software & Consulting stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Expiry Patterns and Investor Behaviour
The December 2025 expiry is a critical date for options traders, as positions are squared off or rolled forward. The heavy put option activity in Infosys ahead of this expiry suggests that investors are actively managing their risk exposures in anticipation of potential price fluctuations.
Options expiry often brings increased volatility, especially when open interest is concentrated near the current stock price. The 1580 strike price, being close to the prevailing market price, is likely to be a focal point for price action in the coming weeks.
Investors and traders should monitor open interest changes and volume trends closely, as these can provide insights into market sentiment and potential support or resistance levels.
Conclusion: Cautious Positioning Amid Mixed Signals
Infosys’ recent put option activity reflects a cautious stance among market participants, balancing the stock’s longer-term technical strength with short-term price pressures. The concentration of puts at the 1580 strike price for the December expiry indicates that investors are either hedging existing positions or speculating on a moderate decline.
While the stock remains above key moving averages, the short-term dip below the 5-day average and falling delivery volumes suggest some hesitation. The broader sector’s slight underperformance and Infosys’ relative weakness compared to the Sensex add context to this positioning.
Market participants should consider these factors when assessing risk and opportunity in Infosys shares, particularly as the December expiry approaches and volatility may increase.
Only ₹14,999 - Get MojoOne + Stock of the Week for 2 Years PLUS 6 Months FREE Claim 83% OFF →
