Infosys Sees Heavy Call Option Activity Ahead of December Expiry

Call Option Trading Highlights

Among the most actively traded call options on Infosys, contracts with a strike price of ₹1,600 have recorded the highest volume, with 6,233 contracts changing hands. This segment also shows an open interest of 7,087 contracts, indicating a substantial number of outstanding positions yet to be settled. The turnover for these contracts stands at approximately ₹6.04 crores, reflecting robust investor interest.

Close behind, call options at the ₹1,580 strike price have seen 3,430 contracts traded, with an open interest of 3,133 contracts and a turnover of nearly ₹4.55 crores. These figures suggest that market participants are actively engaging with strike prices just above the current underlying value, signalling a degree of bullish sentiment.

Underlying Stock Performance and Market Context

Infosys shares are currently priced at ₹1,564, trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This technical positioning often indicates a sustained positive trend over multiple time horizons. However, the stock’s one-day return of 0.16% slightly trails the sector’s 0.36% gain, while outperforming the Sensex, which recorded a decline of 0.33% on the same day.

Investor participation, as measured by delivery volume, has shown a decline with 35.32 lakh shares delivered on 2 December, down by 11.78% compared to the five-day average. Despite this, liquidity remains adequate, with the stock supporting trade sizes up to ₹20.61 crores based on 2% of the five-day average traded value.

Expiry Patterns and Investor Positioning

The December 30 expiry date is attracting concentrated activity in call options, particularly at strike prices slightly above the current market price. This pattern often reflects investor expectations of a price rise before the end of the year, possibly driven by upcoming quarterly results, sector developments, or broader market trends.

Open interest levels at these strikes suggest that many traders are holding onto their positions, potentially anticipating a favourable move in Infosys shares. The concentration of contracts at ₹1,600, which is approximately 2.3% above the current price, may indicate a target range investors are watching closely.

Sector and Market Capitalisation Context

Infosys operates within the Computers - Software & Consulting industry, a sector that has shown resilience amid fluctuating market conditions. The company’s market capitalisation stands at ₹6,48,433 crores, categorising it firmly as a large-cap stock. This scale often attracts institutional investors and contributes to the liquidity observed in both the cash and derivatives segments.

While the stock has underperformed its sector by 0.44% on the day, its position above key moving averages and the active options market activity suggest that investors remain engaged with the stock’s medium-term prospects.

Implications for Investors

The active call option trading in Infosys ahead of the December expiry highlights a market leaning towards potential price appreciation. Investors monitoring the stock should consider the strike prices with the highest open interest and trading volumes as indicative of market sentiment and possible price targets.

However, the slight underperformance relative to the sector and the recent dip in delivery volumes suggest that caution remains warranted. Market participants may wish to balance the bullish positioning in options with the broader technical and fundamental signals.

Given Infosys’s status as a large-cap leader in the software and consulting space, its derivatives activity often serves as a barometer for investor confidence in the sector’s near-term outlook.

Looking Ahead

As the 30 December expiry approaches, the evolution of open interest and trading volumes in these call options will provide further insight into investor expectations. Any significant shifts in the underlying share price or broader market conditions could influence the positioning seen in the options market.

Investors and traders should continue to monitor both the cash and derivatives segments for developments that may impact Infosys’s trajectory in the final quarter of 2025.

Summary

Infosys Ltd’s derivatives market activity reveals a concentrated interest in call options with strike prices at ₹1,580 and ₹1,600 expiring on 30 December 2025. The underlying stock’s current price near ₹1,564, combined with its technical positioning above key moving averages, aligns with the bullish tone reflected in options trading. While the stock’s one-day return slightly trails the sector, the liquidity and open interest data underscore sustained investor engagement. These factors collectively offer a nuanced view of market sentiment as the year-end approaches.

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