Infosys Sees Robust Call Option Activity Ahead of December Expiry

Call Option Trading Highlights

Among the most actively traded call options for Infosys are those with strike prices of ₹1,580 and ₹1,600, both expiring on 30 December 2025. The ₹1,600 strike call option recorded 7,005 contracts traded, generating a turnover of approximately ₹784.56 lakhs. This option also holds an open interest of 18,510 contracts, indicating a substantial number of outstanding positions yet to be exercised or closed.

Meanwhile, the ₹1,580 strike call option saw 3,771 contracts traded, with a turnover of ₹588.58 lakhs and an open interest of 3,831 contracts. The underlying stock price at the time stood at ₹1,585.7, placing the ₹1,580 strike slightly in-the-money and the ₹1,600 strike just out-of-the-money, suggesting investors are positioning for a potential upward move in the near term.

Market Context and Stock Performance

Infosys operates within the Computers - Software & Consulting sector and holds a large-cap market capitalisation of ₹6,55,724 crores. On the trading day preceding 4 December 2025, the stock recorded a modest gain of 0.72%, though it underperformed its sector by 0.58%. Over the last two trading sessions, Infosys has delivered a cumulative return of 1.34%, indicating a short-term positive momentum.

Technical indicators show the stock trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained upward trend across multiple timeframes. Additionally, investor participation has risen notably, with delivery volumes reaching 85.45 lakhs on 3 December 2025, a 125.9% increase compared to the five-day average delivery volume. This heightened activity suggests growing conviction among shareholders and traders alike.

Liquidity and Trading Dynamics

Infosys demonstrates sufficient liquidity to support sizeable trades, with the stock's average traded value over five days allowing for trade sizes up to ₹24.21 crores based on 2% of the average. This liquidity is crucial for institutional investors and traders looking to enter or exit positions without significant market impact.

The open interest figures in the call options market further underscore the stock's appeal to derivatives traders. The large open interest at the ₹1,600 strike price, in particular, suggests that market participants are anticipating a potential price movement above this level by the expiry date. Such positioning often reflects a bullish sentiment, as investors seek to capitalise on upward price swings.

Expiry Patterns and Investor Sentiment

The 30 December 2025 expiry date is a focal point for options traders, with volumes and open interest peaking as investors adjust their portfolios ahead of year-end. The concentration of activity in call options at strike prices near the current market value indicates a strategic bet on the stock's performance in the coming weeks.

While the stock has shown resilience by maintaining levels above key moving averages, the slight underperformance relative to the sector suggests cautious optimism among investors. The increased delivery volumes and rising open interest in call options, however, point to a growing confidence in Infosys's near-term prospects.

Outlook for Investors

For investors monitoring Infosys, the current derivatives activity offers valuable insights into market expectations. The prominence of call options at strike prices close to the current stock price suggests that traders are positioning for a potential rally before the December expiry. This could be driven by anticipated corporate developments, sectoral trends, or broader market dynamics.

However, the stock's recent underperformance relative to its sector and the broader market indicates that caution remains warranted. Investors should consider the balance of technical indicators, liquidity conditions, and options market sentiment when evaluating their positions.

Overall, the combination of rising delivery volumes, sustained trading above key moving averages, and concentrated call option activity paints a picture of measured optimism among market participants. This environment may present opportunities for those seeking exposure to Infosys within the Computers - Software & Consulting sector, particularly in the context of large-cap stability and liquidity.

Comparative Sector Performance

Infosys’s sector, Computers - Software & Consulting, recorded a 1.10% return on the day, while the Sensex benchmark index posted a 0.10% gain. Infosys’s 0.16% return on the same day places it below the sector average but slightly above the Sensex, reflecting a nuanced performance profile. This relative positioning is important for investors weighing sectoral trends against individual stock movements.

Given the stock’s market capitalisation of ₹6,55,724 crores, Infosys remains a heavyweight within its sector and the broader market. Its liquidity and trading volumes support active participation from a wide range of investors, from retail to institutional.

Conclusion

The derivatives market activity surrounding Infosys ahead of the 30 December 2025 expiry highlights a significant interest in call options, particularly at strike prices near the current market level. This suggests a cautious but optimistic outlook among traders, supported by technical indicators and rising investor participation.

While the stock has underperformed its sector marginally in recent sessions, the sustained trading above multiple moving averages and the surge in delivery volumes indicate underlying strength. Investors should continue to monitor open interest trends and price movements as the expiry date approaches to gauge evolving market sentiment.

Infosys’s position as a large-cap leader in the Computers - Software & Consulting sector, combined with its liquidity and active options market, makes it a focal point for market participants seeking exposure to technology and consulting services in India.

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