Infosys Sees Heavy Call Option Activity Ahead of December Expiry

Call Option Activity Highlights

Infosys (INFY) recorded significant call option trading for the expiry dated 30 December 2025, with the strike price of ₹1680 attracting the highest volume. A total of 6,301 contracts exchanged hands, generating a turnover of approximately ₹87.7 lakhs. Open interest at this strike stands at 8,279 contracts, indicating sustained interest and potential positioning ahead of the expiry date.

The underlying stock price at the time of this activity was ₹1654.1, placing the ₹1680 strike slightly out of the money. This suggests that traders are anticipating a possible upward movement in the stock price to surpass this level by the end of the month, reflecting a cautiously optimistic outlook.

Price Movement and Market Context

On the day of analysis, Infosys’s share price showed a decline of 0.87%, marginally underperforming the sector’s 0.36% fall and contrasting with the Sensex’s modest gain of 0.12%. The stock has experienced a two-day consecutive decline, with cumulative returns over this period at -1.87%. Despite this short-term weakness, Infosys continues to trade above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling that the longer-term trend remains intact.

Investor participation, as measured by delivery volume, has shown a notable contraction. On 23 December, delivery volume was recorded at 30.52 lakh shares, representing a 57.85% reduction compared to the five-day average. This decline in delivery volume may indicate a temporary pullback in investor conviction or a shift towards shorter-term trading strategies, such as options.

Liquidity metrics remain robust, with the stock’s traded value supporting trade sizes up to ₹37.54 crore based on 2% of the five-day average traded value. This level of liquidity facilitates active trading in both the cash and derivatives segments.

Investor Sentiment and Expiry Dynamics

The concentration of call option activity at the ₹1680 strike price, which is close to the current market price, suggests that market participants are positioning for a potential upside in Infosys shares by the end of December. This strike price is a focal point for traders looking to capitalise on any positive momentum or favourable news flow in the near term.

Open interest figures reinforce this view, as the sizeable number of outstanding contracts indicates that many investors have yet to close or roll over their positions. This can lead to increased volatility as expiry approaches, especially if the stock price moves towards or beyond the strike price.

Given the stock’s standing above all major moving averages, the technical backdrop supports the possibility of a rebound. However, the recent decline in delivery volumes and the two-day price fall highlight some caution among longer-term holders, who may be awaiting clearer signals before committing further capital.

Sector and Market Comparison

Within the Computers - Software & Consulting sector, Infosys remains a large-cap heavyweight with a market capitalisation of approximately ₹6,76,359 crore. Its performance today aligns broadly with sector trends, which have seen modest declines. The Sensex’s slight positive return contrasts with the sector’s and Infosys’s marginal falls, underscoring the selective nature of market movements in this segment.

Infosys’s ability to maintain trading levels above key moving averages despite short-term pressure may be viewed as a sign of resilience relative to peers. This technical strength could be a factor behind the active call option interest, as traders seek to leverage potential sectoral recovery or company-specific catalysts.

Outlook and Considerations for Investors

As the December expiry approaches, the heavy call option activity in Infosys shares highlights a market expectation of potential price appreciation or at least a stabilisation above current levels. Investors and traders should monitor the stock’s price action closely, especially around the ₹1680 strike price, to gauge whether bullish momentum materialises.

It is important to consider that the recent two-day decline and reduced delivery volumes may reflect some profit-taking or cautious positioning ahead of year-end. The interplay between these factors and the option market activity could lead to increased volatility in the coming days.

Given Infosys’s status as a large-cap leader in the Computers - Software & Consulting sector, developments in its share price often influence broader market sentiment within the industry. Therefore, tracking its option market trends can provide valuable insights into investor expectations and risk appetite.

Investors should also be mindful of broader market conditions and sectoral trends, as these will continue to impact Infosys’s performance and the sustainability of any bullish positioning reflected in the options market.

Summary

Infosys’s call option market activity ahead of the 30 December 2025 expiry reveals a concentrated interest at the ₹1680 strike price, signalling a cautiously optimistic stance among traders. Despite a short-term price decline and lower delivery volumes, the stock’s position above key moving averages supports the possibility of a rebound. The large open interest and turnover in call options underscore the importance of monitoring this stock closely as expiry approaches, particularly given its influential role in the Computers - Software & Consulting sector.

Market participants should weigh these factors carefully alongside broader sector and market dynamics to make informed decisions in the coming weeks.

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