Infosys Sees Robust Call Option Activity as Market Eyes December Expiry

Strong Call Option Turnover Signals Market Interest

Infosys, a leading player in the Computers - Software & Consulting sector, recorded notable activity in call options with the 1600 strike price contracts expiring on 30 December 2025. A total of 7,679 contracts exchanged hands, generating a turnover of approximately ₹720.9 lakhs. The open interest for these contracts stands at 20,955, indicating a substantial volume of outstanding positions that market participants are holding into expiry.

The underlying stock price at the time of this activity was ₹1,603.2, placing the 1600 strike call options slightly in-the-money. This positioning suggests a degree of bullish sentiment among traders, who appear to be anticipating either continued price stability or moderate appreciation in the near term.

Price Performance and Moving Averages Support Positive Momentum

Infosys has demonstrated resilience in its price action, outperforming its sector by 0.31% on the day of analysis. The stock has recorded gains over the past three consecutive sessions, accumulating a return of 1.24% during this period. Notably, the share price is trading above key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, which often serve as technical support levels and indicators of sustained upward momentum.

Such technical positioning can encourage further call option interest as traders seek to capitalise on potential upside while managing risk through defined strike prices and expiry dates.

Liquidity and Investor Participation Trends

Liquidity remains adequate for sizeable trades, with the stock’s traded value averaging around ₹20.19 crores based on 2% of the 5-day average traded value. However, delivery volume data from 12 December 2025 shows a decline of 20.87% compared to the 5-day average, with 34.51 lakh shares delivered. This reduction in investor participation may reflect a cautious stance among long-term holders or a shift towards derivative instruments for exposure.

Market Capitalisation and Sector Context

Infosys holds a large-cap status with a market capitalisation of approximately ₹6,62,247 crores, underscoring its prominence within the Computers - Software & Consulting industry. The sector itself has shown modest gains, with Infosys outperforming the sector’s 1-day return of 0.08% and the broader Sensex index which recorded a decline of 0.32% on the same day.

This relative strength may be a factor driving the elevated call option activity, as investors seek to position themselves favourably in a stock that is demonstrating resilience amid mixed market conditions.

Expiry Patterns and Strike Price Selection

The concentration of call option contracts at the 1600 strike price for the 30 December 2025 expiry suggests that market participants are focusing on a near-term timeframe to capitalise on expected price movements. The strike price closely aligns with the current underlying value, indicating a strategic choice to balance risk and reward.

Such expiry patterns often reflect a tactical approach by traders who anticipate that the stock will maintain or exceed this level by the end of the month, potentially benefiting from upcoming corporate developments, sector trends, or broader market dynamics.

Investor Sentiment and Positioning

The volume and open interest data point to a predominantly bullish positioning in Infosys call options. This is consistent with the stock’s recent price trajectory and technical indicators. However, the decline in delivery volume suggests that some investors may be shifting from direct equity holdings to derivative instruments, possibly to leverage capital efficiency or hedge existing positions.

Such dynamics highlight the nuanced strategies employed by market participants as they navigate evolving market conditions and seek to optimise their exposure to Infosys shares.

Outlook and Considerations for Investors

While the call option activity and technical indicators suggest a positive near-term outlook for Infosys, investors should consider the broader market environment and sector-specific factors. The stock’s ability to maintain its position above key moving averages is a positive technical signal, yet fluctuations in delivery volumes and market volatility warrant a measured approach.

Monitoring open interest trends and expiry dynamics will be crucial in assessing whether the current bullish positioning sustains or adjusts as the December expiry approaches.

Summary

Infosys Ltd’s active call option trading at the 1600 strike price for the 30 December 2025 expiry highlights significant market interest in the stock’s near-term performance. Supported by steady price gains, sector outperformance, and technical strength, the derivatives market reflects a cautiously optimistic stance among investors. However, shifts in delivery volumes and liquidity metrics suggest a complex interplay of strategies as market participants position themselves ahead of the expiry.

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