Put Option Activity Concentrated Near Current Market Levels
Data from the derivatives market reveals that Infosys (INFY) put options have attracted substantial volumes, particularly at strike prices close to the current underlying value of ₹1,657.4. The most actively traded put contracts include strikes at ₹1,600, ₹1,620, ₹1,640, ₹1,660, and ₹1,680, all expiring on 30 December 2025.
The ₹1,660 strike price leads in terms of contracts traded, with 8,910 contracts changing hands, generating a turnover of approximately ₹5.47 crores. This is closely followed by the ₹1,640 strike with 8,117 contracts traded and a turnover of ₹2.25 crores. The ₹1,680 strike also shows significant activity, with 4,480 contracts traded and a turnover exceeding ₹49 crores, indicating a high premium paid for protection or speculative positioning at this level.
Open interest figures further underscore the concentration of interest at the ₹1,600 strike, where 12,478 contracts remain open, suggesting a sizeable number of investors maintaining bearish or hedging positions at this level. The ₹1,620 and ₹1,640 strikes also hold considerable open interest, with 6,343 and 5,945 contracts respectively.
Market Context and Price Movement
Infosys shares have experienced a decline of 1.83% on the day, underperforming the broader sector which fell by 1.26%, and the Sensex which registered a marginal dip of 0.19%. This marks a reversal after four consecutive days of gains, despite the stock trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The delivery volume on 22 December surged to 1.8 crore shares, a rise of over 327% compared to the five-day average, indicating heightened investor participation.
Liquidity remains robust, with the stock supporting trade sizes up to ₹36.67 crores based on 2% of the five-day average traded value. The market capitalisation of Infosys stands at ₹7,02,007 crores, categorising it firmly as a large-cap stock within the Computers - Software & Consulting industry.
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Bearish Positioning and Hedging Implications
The concentration of put option activity at strike prices slightly below and above the current market price suggests a cautious stance among market participants. Investors may be employing these puts as a hedge against potential downside risks or as speculative bets anticipating a correction in Infosys shares before the December expiry.
The elevated open interest at the ₹1,600 strike, which is approximately 3.5% below the current underlying price, indicates a significant level of protection being sought at this threshold. Similarly, the sizeable turnover at the ₹1,680 and ₹1,660 strikes, which are near or slightly above the current market price, points to a range of strategies including protective puts and possible bearish bets.
Such activity is often observed when investors seek to manage portfolio risk amid uncertain market conditions or sector-specific headwinds. The Computers - Software & Consulting sector has seen mixed performance recently, and the put option interest in Infosys may reflect broader concerns about near-term volatility.
Expiry Patterns and Market Sentiment
All the highlighted put options are set to expire on 30 December 2025, marking the final trading day for these contracts in the current series. The clustering of activity around this expiry date suggests that traders are positioning for potential price movements or volatility spikes as the year-end approaches.
Expiry-related dynamics often lead to increased volumes and open interest as investors adjust or close positions. The substantial turnover and open interest figures for Infosys puts indicate that this expiry cycle is attracting considerable attention from market participants.
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Investor Takeaways and Outlook
The pronounced put option activity in Infosys ahead of the 30 December expiry highlights a market environment where investors are actively managing risk or expressing caution. While the stock remains above key moving averages, the recent price decline and elevated delivery volumes suggest a phase of consolidation or potential volatility.
Market participants should monitor the evolution of open interest and volume in these put strikes as expiry approaches, as shifts could signal changing sentiment or emerging trends. The interplay between the underlying stock price and option market positioning will be crucial in assessing near-term directional cues for Infosys.
Given the large-cap status and significant liquidity of Infosys shares, the options market activity provides valuable insight into investor expectations and risk management strategies within the Computers - Software & Consulting sector.
Summary of Key Put Option Metrics for Infosys (Expiry 30 Dec 2025)
- Strike ₹1,600: 4,136 contracts traded, turnover ₹2.65 crores, open interest 12,478
- Strike ₹1,620: 3,698 contracts traded, turnover ₹4.36 crores, open interest 6,343
- Strike ₹1,640: 8,117 contracts traded, turnover ₹2.25 crores, open interest 5,945
- Strike ₹1,660: 8,910 contracts traded, turnover ₹5.47 crores, open interest 3,996
- Strike ₹1,680: 4,480 contracts traded, turnover ₹49.23 crores, open interest 3,333
These figures illustrate the breadth and depth of put option interest clustered around the current market price, underscoring the strategic importance of these strikes for investors navigating the year-end market environment.
Conclusion
Infosys is currently witnessing a notable concentration of put option activity, reflecting a blend of hedging and speculative positioning as the December expiry approaches. The data suggests that investors are preparing for potential downside risks or volatility, despite the stock’s technical strength indicated by its position above multiple moving averages.
As the expiry date nears, monitoring the interplay between open interest, volume, and underlying price movements will be essential for understanding the evolving market sentiment around this key large-cap stock in the software and consulting sector.
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