A Deep Dive into Microsoft's Options Market Dynamics
Nov 7, 2024
Bullish Trends in Microsoft Options Activity for October 22
Recently, wealthy investors have shown a strong bullish sentiment towards Microsoft (NASDAQ: MSFT), indicating potential positive developments ahead. This notable shift in options activity shouldn't be overlooked by market participants. Insights from Benzinga's public options tracking revealed this significant trend today.
Our analysis today unveiled 28 remarkable options trades related to Microsoft, highlighting an unusually high level of market engagement.
The investor sentiment seems to be mixed, with 50% adopting a bullish outlook and 25% bearing a more bearish stance. Of the trades observed, only 2 were puts, amounting to $82,250, while the remaining 26 were calls, totaling a substantial $1,736,859.
Projected Price Targets
Based on observed Volume and Open Interest for these options, influential traders, often referred to as 'whales', seem to be eyeing a target price range of $380.00 to $430.00 for Microsoft over the last three months.
Analyzing Volume & Open Interest
Today's data showcases a mean open interest of 4,342.23 for Microsoft options against a robust total volume of 73,856.00.
Below is a visual representation of the changes in call and put options volume and open interest for significant trades involving Microsoft within the targeted $380.00 to $430.00 strike price range over the past 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 | SWEEP | BULLISH | 10/25/24 | $3.55 | $3.5 | $3.53 | $420.00 | $340.9K | 8.8K | 2.1K |
| MSFT | CALL | TRADE | BULLISH | 11/15/24 | $9.5 | $9.4 | $9.5 | $430.00 | $190.0K | 8.7K | 288 |
| MSFT | CALL | TRADE | BEARISH | 03/21/25 | $37.15 | $36.5 | $36.7 | $410.00 | $91.7K | 1.2K | 26 |
| MSFT | CALL | SWEEP | BEARISH | 10/25/24 | $2.26 | $2.18 | $2.22 | $425.00 | $91.3K | 8.9K | 7.8K |
| MSFT | CALL | SWEEP | BULLISH | 10/25/24 | $4.1 | $3.95 | $4.07 | $420.00 | $87.1K | 8.8K | 3.8K |
About Microsoft
Microsoft is a leading technology company that develops and licenses various software solutions for both consumers and enterprises. It is well-known for its Windows operating system and the Office productivity suite. The company operates through three main segments: productivity and business processes (including traditional Microsoft Office software, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, and Dynamics), intelligent cloud services (which includes Azure, Windows Server OS, and SQL Server), and personal computing (which encompasses Windows Client, Xbox, Bing, and Surface devices).
Given the robust options activity surrounding Microsoft recently, it is prudent to review the company's current standing in the market.
Current Position of Microsoft
- The MSFT stock is currently trading at $419.31, with a slight increase of 0.13% and a trading volume of 1,096,804.
- Relative Strength Index (RSI) readings indicate that the stock is exhibiting neutral behavior, residing between overbought and oversold conditions.
- The upcoming earnings release for Microsoft is anticipated in just 8 days.
What The Experts Say On Microsoft
A group of 5 professional analysts has provided their evaluations on Microsoft in the past 30 days. The average price target set for the stock is $510.00.
Turn $1000 into $1270 in just 20 days?
A seasoned options trader reveals a simple one-line chart technique that shows the best times to buy and sell. You can replicate his trades, which have yielded an average profit of 27% every 20 days. Click here for access.
Key insights from analysts include:
- An analyst from Keybanc maintains an Overweight rating, projecting a price of $505 for Microsoft.
- A Goldman Sachs analyst continues to hold a Buy rating with a price target of $500.
- Piper Sandler keeps an Overweight rating, setting a target price of $470.
- A Truist Securities analyst downgraded to a Buy rating, increasing the target price to $600.
- DA Davidson adjusted its rating to Neutral, lowering the target price to $475.
While trading options presents higher risks, it also comes with the chance for greater returns. Knowledgeable traders are often better equipped to handle these challenges through continuous learning, strategic trade adjustments, and close monitoring of market trends. To stay updated on the latest options trades for Microsoft, consider utilizing tools that provide real-time alerts.
Microsoft, Options, Investors