Call Option Trading Highlights
On 2 December 2025, Infosys witnessed notable activity in its call options expiring on 30 December 2025. The strike price attracting the highest volume was ₹1,600, with 3,914 contracts traded. This level of activity generated a turnover of approximately ₹406.27 lakhs, signalling substantial investor engagement in bullish positioning ahead of the year-end expiry.
Open interest at this strike price stood at 6,924 contracts, indicating a strong build-up of outstanding positions. The underlying stock price was ₹1,573.40, placing the ₹1,600 strike slightly out-of-the-money but within reach if the stock maintains its upward momentum.
Price and Performance Context
Infosys has demonstrated resilience in recent sessions, outperforming its sector by 0.41% on the day under review. The stock has recorded gains over the past two consecutive days, accumulating a return of 0.89% during this period. Its trading range has remained relatively narrow, confined within ₹15.3, suggesting measured price movements amid steady investor interest.
Technical indicators show that Infosys is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, a pattern often interpreted as a bullish signal by market participants. This technical backdrop may be contributing to the heightened call option activity, as traders position themselves for potential upside.
Liquidity and Market Participation
Liquidity metrics reveal that the stock is sufficiently liquid to accommodate sizeable trades, with a 5-day average traded value supporting trade sizes up to ₹21.61 crores. However, delivery volume on 1 December was recorded at 32.05 lakhs, reflecting a decline of 44.52% compared to the 5-day average delivery volume. This reduction in investor participation in the delivery segment may indicate a preference for derivatives trading over outright stock purchases in the current environment.
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Market Capitalisation and Sector Positioning
Infosys holds a market capitalisation of ₹6,49,430 crores, categorising it firmly as a large-cap entity within the Computers - Software & Consulting sector. This stature underpins its role as a bellwether stock in the technology space, attracting both institutional and retail investor attention.
On the day in question, Infosys recorded a 1-day return of 0.62%, contrasting with a marginal sector return of -0.01% and a Sensex decline of 0.31%. This relative strength highlights the stock’s capacity to outperform broader market indices and its sector peers, factors that may be influencing the bullish sentiment observed in the options market.
Expiry Patterns and Investor Sentiment
The concentration of call option contracts at the ₹1,600 strike price for the 30 December expiry suggests that investors are positioning for a potential price appreciation in the near term. The proximity of this strike to the current underlying price indicates a moderately optimistic outlook, with traders anticipating that Infosys could breach this level before the options expire.
Such positioning often reflects expectations of positive catalysts or continued momentum in the stock’s price trajectory. Given the stock’s recent gains and technical positioning above key moving averages, this sentiment aligns with a cautious but constructive market view.
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Implications for Investors and Traders
The active call option trading in Infosys highlights a market environment where participants are seeking leveraged exposure to potential upside moves without committing to outright stock purchases. This approach can offer strategic flexibility, especially in a stock that has shown consistent short-term gains and technical strength.
Investors analysing this activity should consider the broader market context, including sector performance and overall market indices, which have shown more subdued or negative returns in comparison. The divergence between Infosys and its peers may signal company-specific factors or investor confidence in its near-term prospects.
Moreover, the decline in delivery volume juxtaposed with robust options turnover suggests a shift in trading preferences, with derivatives becoming a preferred vehicle for expressing market views on Infosys.
Looking Ahead
As the 30 December expiry approaches, monitoring changes in open interest and strike price concentrations will provide further insights into evolving market sentiment. Should the stock price approach or surpass the ₹1,600 level, the call options at this strike could see increased activity, potentially influencing volatility and price dynamics.
Conversely, if the stock remains below this threshold, traders may adjust their positions accordingly, impacting open interest and turnover figures. Such developments will be critical for investors seeking to understand the interplay between spot market movements and derivatives positioning in Infosys.
Conclusion
Infosys Ltd’s recent call option activity underscores a period of measured optimism among market participants. The concentration of trades at the ₹1,600 strike price for the December expiry, combined with the stock’s technical positioning and relative outperformance, paints a picture of cautious bullishness. Investors and traders should continue to monitor these dynamics alongside broader market trends to inform their strategies in this leading software and consulting company.
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