Rs 975 and Rs 1035 Puts Draw Over 8,600 Contracts on Infosys Ltd Ahead of June Expiry

Put Options Event and Cash Market Context

The most active put strikes for Infosys Ltd on 19 Jun 2026 were Rs 1035 and Rs 975, with 4,253 and 4,426 contracts traded respectively. The Rs 1035 strike is almost at-the-money (ATM), just 0.2% below the underlying price of Rs 1,037.20, while the Rs 975 strike is approximately 6% out-of-the-money (OTM). Both options expire on 30 Jun 2026, giving traders less than two weeks to realise their positions.

The stock itself has been under pressure, falling 7.64% on the day and hitting a new 52-week low at Rs 1,030. It has declined over 10.5% in the past two sessions and trades below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day. This bearish momentum in the cash market provides important context for interpreting the put activity — is the put buying a directional bet or a hedge against further downside?

Strike Price Analysis: Moneyness and Intent

The Rs 1035 strike, being ATM, is the most significant in terms of potential bearish positioning. Buyers of these puts would profit if the stock continues to fall below this level before expiry. The Rs 975 strike, 6% below the current price, is OTM and may represent either a more speculative bearish bet or a protective hedge for long positions anticipating a deeper correction.

Interestingly, the Rs 1050 strike also saw heavy put activity with 6,031 contracts traded, despite being slightly in-the-money (ITM) relative to the current price. This suggests some put writing or spread strategies might be in play, as sellers collect premium expecting the stock to hold above this level. The mix of ITM, ATM, and OTM strikes involved points to a complex options landscape rather than a straightforward bearish consensus.

Given the stock’s recent weakness, the ATM and ITM put activity aligns with directional bearish bets, while the OTM Rs 975 puts could be either speculative downside plays or protective hedges for longer-term holders — which interpretation fits best with the overall data?

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

Put options inherently carry ambiguous signals. The heavy volume at the Rs 1035 and Rs 1050 strikes, combined with the stock’s sharp decline, suggests a strong element of bearish positioning. Traders appear to be betting on further downside or protecting existing long positions from continued losses.

However, the Rs 975 strike’s OTM puts, with 4,426 contracts traded and an open interest of 2,740, may indicate a mix of fresh bearish bets and hedging. The relatively high open interest compared to contracts traded suggests some positions are being adjusted rather than entirely new bets placed. This could reflect long holders buying protection against a deeper fall or traders selling puts to collect premium, anticipating a rebound.

Put writing is plausible at the Rs 1050 strike, where 6,031 contracts traded against an open interest of 2,149. Sellers here may be confident the stock will not fall below this level by expiry, collecting premium in a bullish or neutral stance. This dynamic highlights the importance of not assuming all put activity signals bearish sentiment.

Open Interest and Contracts Analysis

The ratio of contracts traded to open interest offers insight into whether the activity represents fresh positioning or adjustments. For the Rs 1035 put, 4,671 contracts traded against an open interest of 1,683, a ratio of approximately 2.8:1, indicating significant new activity. Similarly, the Rs 975 strike shows a ratio of about 1.6:1, suggesting a mix of fresh and existing positions.

The Rs 1050 strike’s ratio is higher, with 6,031 contracts traded versus 2,149 open interest, pointing to active put writing or rolling of positions. This pattern supports the view that some traders are selling puts to collect premium, expecting the stock to hold above this level.

Overall, the open interest data confirms that the put market is active with a blend of fresh bearish bets, hedging, and premium collection strategies. This complexity is typical in a large-cap stock experiencing a sharp decline but still retaining some technical support zones.

Cash Market Context: Momentum and Moving Averages

Infosys Ltd has been under sustained selling pressure, falling below all key moving averages. The stock’s 1-day return of -7.94% significantly underperformed the IT Software sector’s -4.86% and the Sensex’s -0.80%. The new 52-week low at Rs 1,030 and the gap down open reinforce the bearish momentum.

Delivery volumes rose sharply by 121.28% on 18 Jun to 97.15 lakh shares, indicating strong investor participation in the sell-off. This suggests the decline is supported by genuine selling interest rather than thin volume or technical selling alone. The put activity at ATM and ITM strikes aligns with this bearish cash market backdrop, while the OTM puts may be protective hedges against further downside or speculative bets on a deeper correction.

Delivery Volume and Quality of Participation

The surge in delivery volume contrasts with the stock’s sharp fall, signalling that the decline is backed by committed selling rather than intraday trading or short-term speculation. This lends weight to the interpretation that the put buying at ATM and ITM strikes is directional, reflecting expectations of continued weakness or protection of existing long positions.

However, the presence of put writing at the Rs 1050 strike suggests some traders are willing to take a more bullish stance, collecting premium in anticipation of a stabilisation or rebound. This duality in the options market mirrors the mixed signals from the cash market’s technical indicators.

Conclusion: A Complex Put Market Reflecting Both Protection and Bearish Positioning

The heavy put activity on Infosys Ltd ahead of the 30 June expiry reveals a multifaceted options market. The ATM and ITM strikes near Rs 1035 and Rs 1050 show strong bearish positioning or protective hedging amid a sharp downtrend in the stock. Meanwhile, the OTM Rs 975 puts suggest a combination of speculative downside bets and hedging against a deeper fall.

Put writing at the Rs 1050 strike adds a bullish dimension, with sellers collecting premium expecting the stock to hold above this level. The cash market’s technical weakness and rising delivery volumes support the view that the put buying is largely directional or protective rather than purely speculative.

This nuanced picture underscores the importance of analysing strike prices, open interest, and cash market context together to understand options activity — should investors interpret the put surge as a signal to hedge, bet on further declines, or watch for a potential rebound?

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