Spotlight on Microsoft: Analyzing the Surge in Options Activity

Author: Benzinga Insights | July 15, 2024 09:47am

Whales with a lot of money to spend have taken a noticeably bearish stance on Microsoft.

Looking at options history for Microsoft (NASDAQ:MSFT) we detected 12 trades.

If we consider the specifics of each trade, it is accurate to state that 33% of the investors opened trades with bullish expectations and 41% with bearish.

From the overall spotted trades, 4 are puts, for a total amount of $364,008 and 8, calls, for a total amount of $645,325.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $185.0 to $520.0 for Microsoft over the recent three months.

Insights into Volume & Open Interest

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Microsoft's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Microsoft's whale trades within a strike price range from $185.0 to $520.0 in the last 30 days.

Microsoft 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
MSFT	CALL	TRADE	BEARISH	07/26/24	$12.1	$11.9	$11.9	$447.50	$285.6K	441	1
MSFT	PUT	SWEEP	BEARISH	08/02/24	$9.45	$8.8	$9.24	$447.50	$168.9K	0	0
MSFT	CALL	SWEEP	BEARISH	03/21/25	$80.65	$79.0	$79.0	$400.00	$110.6K	339	0
MSFT	PUT	SWEEP	NEUTRAL	07/26/24	$5.3	$4.8	$4.92	$447.50	$90.8K	229	4
MSFT	PUT	SWEEP	NEUTRAL	07/19/24	$12.6	$11.4	$11.82	$465.00	$71.4K	4.3K	568

About Microsoft

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).

Following our analysis of the options activities associated with Microsoft, we pivot to a closer look at the company's own performance.

Where Is Microsoft Standing Right Now?

• With a volume of 607,842, the price of MSFT is down -0.12% at $453.01.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 11 days.

What Analysts Are Saying About Microsoft

In the last month, 5 experts released ratings on this stock with an average target price of $522.2.

• Maintaining their stance, an analyst from Citigroup continues to hold a Buy rating for Microsoft, targeting a price of $520.
• Maintaining their stance, an analyst from Piper Sandler continues to hold a Overweight rating for Microsoft, targeting a price of $465.
• Consistent in their evaluation, an analyst from Truist Securities keeps a Buy rating on Microsoft with a target price of $600.
• An analyst from BMO Capital has decided to maintain their Outperform rating on Microsoft, which currently sits at a price target of $500.
• Consistent in their evaluation, an analyst from Argus Research keeps a Buy rating on Microsoft with a target price of $526.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Microsoft options trades with real-time alerts from Benzinga Pro.

Posted In: MSFT