Microsoft's Options Frenzy: What You Need to Know

Author: Benzinga Insights | March 27, 2024 10:46am

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 31 trades.

If we consider the specifics of each trade, it is accurate to state that 35% of the investors opened trades with bullish expectations and 64% with bearish.

From the overall spotted trades, 7 are puts, for a total amount of $291,444 and 24, calls, for a total amount of $2,283,989.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $260.0 to $500.0 for Microsoft over the last 3 months.

Volume & Open Interest Trends

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

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 activity within a strike price range from $260.0 to $500.0 in the last 30 days.

Microsoft 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Strike Price	Total Trade Price	Open Interest	Volume
MSFT	CALL	TRADE	BULLISH	06/18/26	$425.00	$810.0K	81	102
MSFT	CALL	TRADE	BEARISH	06/21/24	$430.00	$187.0K	5.4K	0
MSFT	CALL	TRADE	BEARISH	06/21/24	$430.00	$183.9K	5.4K	200
MSFT	CALL	SWEEP	BULLISH	06/21/24	$455.00	$144.0K	1.9K	4
MSFT	CALL	TRADE	NEUTRAL	05/17/24	$360.00	$130.2K	548	0

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).

After a thorough review of the options trading surrounding Microsoft, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of Microsoft

• With a trading volume of 2,842,513, the price of MSFT is up by 0.66%, reaching $424.45.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 27 days from now.

What Analysts Are Saying About Microsoft

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $518.0.

• In a cautious move, an analyst from Truist Securities downgraded its rating to Buy, setting a price target of $600.
• Maintaining their stance, an analyst from Wedbush continues to hold a Outperform rating for Microsoft, targeting a price of $500.
• Maintaining their stance, an analyst from DA Davidson continues to hold a Buy rating for Microsoft, targeting a price of $500.
• Reflecting concerns, an analyst from DA Davidson lowers its rating to Buy with a new price target of $500.
• An analyst from Keybanc has revised its rating downward to Overweight, adjusting the price target to $490.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Microsoft with Benzinga Pro for real-time alerts.

Posted In: MSFT