Put Option Trading Overview
Infosys, a leading player in the software and consulting industry with a market capitalisation of approximately ₹6,81,192 crores, has attracted considerable attention in the options segment. The underlying stock, currently valued at ₹1,675.5, has seen multiple put options with strike prices clustered between ₹1,600 and ₹1,680 garnering substantial trading volumes and open interest.
Among the most actively traded put options expiring on 30 December 2025, the strike price of ₹1,660 stands out with 9,321 contracts exchanged, generating a turnover of ₹485.06 lakhs and an open interest of 3,170 contracts. Close behind, the ₹1,680 strike price recorded 6,778 contracts traded, with a notably higher turnover of ₹635.23 lakhs despite a lower open interest of 1,629 contracts. This suggests a strong premium paid for protection or speculative positioning at this level.
Other significant strikes include ₹1,620 with 7,014 contracts traded and an open interest of 6,435, and ₹1,640 with 7,328 contracts traded and 5,172 contracts open. The ₹1,600 strike also saw 6,702 contracts traded, with open interest reaching 10,199 contracts, the highest among the strikes, indicating a concentrated interest at this lower boundary.
Expiry Patterns and Market Implications
The clustering of put option activity around these strike prices, all expiring on the last trading day of December, points to a strategic positioning by market participants. The expiry date is a critical juncture for options traders, often prompting adjustments in hedging strategies and speculative bets. The elevated open interest at the ₹1,600 strike, combined with high turnover at the ₹1,680 strike, suggests a range within which investors are seeking downside protection or anticipating potential price movements.
Infosys’s stock price has demonstrated resilience in recent sessions, trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The stock has outperformed its sector by 1.31% today and has recorded a four-day consecutive gain, delivering a cumulative return of 5.3% over this period. The intraday high touched ₹1,693.2, representing a 3.33% rise, signalling positive momentum despite the heavy put option activity.
Our current Stock of the Month is out! This Large Cap from Automobiles - Passenger Cars emerged as the single best opportunity from our elite universe. Get the details now!
- - Current monthly selection
- - Single best opportunity
- - Elite universe pick
Investor Positioning and Hedging Strategies
The pronounced put option volumes at strike prices below the current market value of Infosys indicate a degree of caution among investors. Put options serve as a form of insurance against potential declines, and the concentration of open interest at ₹1,600 and ₹1,620 suggests that market participants are hedging against a downside scenario near these levels.
Simultaneously, the substantial turnover at the ₹1,680 strike price, which is slightly above the current stock price, may reflect speculative positioning or protective measures against a moderate pullback. The combination of these strike prices forms a band within which traders appear to be managing risk ahead of the December expiry.
Infosys’s liquidity profile supports active trading, with delivery volumes on 19 December reaching 89.02 lakhs, a rise of 185.45% compared to the five-day average. The stock’s traded value liquidity, based on 2% of the five-day average, accommodates trade sizes up to ₹23.4 crores, facilitating substantial institutional and retail participation.
Comparative Market Context
In the broader market, Infosys’s one-day return of 2.32% surpasses the sector’s 0.96% and the Sensex’s 0.60%, underscoring its relative strength. This outperformance, coupled with the heavy put option activity, paints a nuanced picture of investor sentiment. While the stock exhibits upward momentum, the derivatives market reveals a hedging inclination, possibly reflecting uncertainty about near-term volatility or profit-taking considerations.
Why settle for Infosys ? SwitchER evaluates this Computers - Software & Consulting large-cap against peers, other sectors, and market caps to find you superior investment opportunities!
- - Comprehensive evaluation done
- - Superior opportunities identified
- - Smart switching enabled
Outlook and Considerations for Investors
As the 30 December expiry approaches, the concentration of put option activity in Infosys warrants close monitoring. The strike prices with the highest open interest and turnover may act as key support and resistance levels in the near term. Investors and traders should consider the implications of this derivatives positioning alongside the stock’s technical indicators and sector performance.
The interplay between the stock’s recent gains and the hedging evident in the options market suggests a cautious optimism. Market participants appear to be balancing the potential for continued upside with protective measures against volatility or corrections. This dynamic is typical in large-cap stocks within the technology and consulting space, where earnings announcements, global economic factors, and sector-specific developments can influence price action.
Overall, the data underscores the importance of a comprehensive approach to investment decisions, integrating both cash market trends and derivatives market signals to gauge sentiment and risk.
Summary
Infosys Ltd’s derivatives market activity ahead of the December 2025 expiry reveals a significant volume of put options traded across multiple strike prices, with ₹1,600 and ₹1,680 strikes particularly prominent. This pattern reflects a blend of hedging and bearish positioning amid a backdrop of recent stock price gains and sector outperformance. Investors should remain attentive to these levels as potential indicators of market sentiment and price support in the coming weeks.
Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Start Saving Now →
