Infosys Sees Robust Call Option Activity Ahead of December Expiry

Call Option Trading Overview

Infosys, a leading player in the Computers - Software & Consulting sector, has recorded heavy call option volumes concentrated around strike prices close to its current market value. The most active strike price is ₹1,640, with 12,293 contracts traded, generating a turnover of approximately ₹1,034.58 lakhs. This level of activity is accompanied by an open interest of 8,991 contracts, indicating sustained investor engagement at this strike.

Other strike prices with notable call option volumes include ₹1,660 with 12,943 contracts traded and a turnover of ₹670.97 lakhs, and ₹1,700 with 9,486 contracts traded, amounting to ₹149.88 lakhs in turnover. The ₹1,620 and ₹1,680 strikes also show considerable activity, with 5,424 and 6,980 contracts traded respectively. These figures reflect a broad spectrum of bullish positioning, with investors targeting strikes both slightly below and above the current underlying price.

Expiry and Market Context

All the highlighted call options share the same expiry date of 30 December 2025, underscoring a concentrated focus on the year-end timeframe. This expiry pattern suggests that market participants are positioning themselves for potential price movements or corporate developments expected before the close of the calendar year.

Infosys’s underlying stock price has shown resilience, trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This technical backdrop supports the observed call option interest, as investors appear to be anticipating continued momentum or a positive catalyst in the near term.

Performance and Liquidity Metrics

On 19 December 2025, Infosys outperformed its sector by 0.51%, with a daily return of 1.06% compared to the sector’s 0.53% and the Sensex’s 0.57%. The stock has recorded gains over the past three consecutive days, delivering a cumulative return of 3.2% during this period. Such performance metrics may be contributing to the bullish sentiment reflected in the options market.

Investor participation has also shown signs of strengthening. Delivery volume on 18 December reached 37.01 lakh shares, marking a 26.22% rise against the five-day average delivery volume. This increase in delivery volume indicates heightened investor conviction and liquidity in the underlying stock.

Liquidity considerations are favourable for trading, with the stock’s average traded value supporting trade sizes up to ₹17.69 crore based on 2% of the five-day average traded value. This level of liquidity is conducive to active options trading and large contract volumes.

Investor Positioning and Market Implications

The concentration of call option activity near and above the current stock price suggests a predominantly bullish stance among market participants. The strike prices of ₹1,640, ₹1,660, and ₹1,700 collectively account for a substantial portion of traded contracts and turnover, indicating expectations of upward price movement or at least a willingness to hedge against such scenarios.

Open interest figures further reinforce this view, with the highest open interest recorded at the ₹1,640 strike, followed by significant interest at ₹1,700 and ₹1,620 strikes. This distribution of open interest highlights where investors are most actively positioning themselves ahead of the December expiry.

Given Infosys’s large market capitalisation of approximately ₹6,75,687 crore and its standing as a major player in the software and consulting industry, these options market dynamics may reflect broader sectoral trends and investor sentiment towards technology stocks in the current market environment.

Technical and Fundamental Considerations

Infosys’s trading above all major moving averages signals a positive technical setup, which often encourages call option buying as investors seek leveraged exposure to potential price appreciation. The stock’s recent outperformance relative to its sector and the Sensex adds to this narrative, suggesting that market participants are factoring in favourable near-term prospects.

However, the presence of call options at strike prices both below and above the current market price also indicates a range of expectations, with some investors possibly adopting hedging strategies or speculative positions that account for varying market scenarios.

Outlook Ahead of Expiry

As the 30 December 2025 expiry approaches, the options market activity in Infosys will remain a key indicator of investor sentiment and expectations. The substantial volumes and open interest across multiple strike prices suggest that traders are actively positioning for potential volatility or directional moves in the stock.

Investors and market watchers should monitor changes in open interest and volume in the coming days to gauge shifts in market conviction. Additionally, the interplay between the underlying stock’s price action and options market dynamics will provide insights into the evolving risk-reward landscape for Infosys.

Given the stock’s liquidity and sustained investor participation, Infosys continues to be a prominent candidate for options trading strategies within the large-cap technology segment.

Summary

Infosys Ltd’s call option market activity ahead of the December expiry reveals a strong interest in strike prices near the current underlying value of ₹1,644.70. The concentration of traded contracts and open interest at strikes ranging from ₹1,620 to ₹1,700 reflects a predominantly bullish positioning among investors. Supported by positive technical indicators and recent outperformance, the stock’s derivatives market activity offers valuable insights into market expectations and potential price trajectories as the year-end approaches.

Market participants should continue to observe the evolving options landscape for Infosys to better understand investor sentiment and to identify potential trading opportunities in this key large-cap stock.

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