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Analysis of the growth in option activity

Posted on by darion

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

Analyzing the options history for Microsoft (NASDAQ:MSFT) we detected 12 transactions.

If we take into account the specifics of each transaction, it can be accurately stated that 33% of investors opened transactions with growth expectations and 41% with decline expectations.

Of the total transactions observed, 4 were sell transactions with a total value of $364,008 and 8 were buy transactions with a total value of $645,325.

Expected price movements

Based on trading activity, significant investors expected the Microsoft share price to be between $185.0 and $520.0 over the last three months.

Volume insight and open interest

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

Microsoft 30-Day Option Volume and Interest Summary

Call Option Chart

Biggest options noticed:

Symbol PUT/CALL Type of trade Sentiment The term of validity Ask Offer Price Execution price Total Trade Price Open interest volume
MSFT CALL TRADE BEARISH 26.07.24 12.1 11.9 PLN 11.9 PLN 447.50 PLN 285.6 thousand dollars 441 1
MSFT PLACE SWEEP BEARISH 08.02.24 $9.45 8.8 dollars 9.24 PLN 447.50 PLN 168.9 thousand dollars 0 0
MSFT CALL SWEEP BEARISH 21.03.25 80.65 PLN 79.00 PLN 79.00 PLN 400.00 PLN 110.6 thousand dollars 339 0
MSFT PLACE SWEEP NEUTRAL 26.07.24 5.3 PLN 4.8 dollars $4.92 447.50 PLN $90.8k 229 4
MSFT PLACE SWEEP NEUTRAL 19.07.24 12.6 PLN 11.4 PLN 11.82 PLN 465.00 PLN 71.4k dollars 4.3 thousand 568

About Microsoft

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

After analyzing Microsoft’s options activity, we’ll take a closer look at the company’s performance itself.

Where does Microsoft currently stand?

  • On volume of 607,842, MSFT price fell 0.12% to $453.01.
  • RSI indicators suggest that the underlying stock may be approaching an overbought state.
  • The next financial results are expected to be released in 11 days.

What analysts say about Microsoft

In the last month, 5 experts published ratings for the company’s shares, setting the average target price at USD 522.2.

  • The Citigroup analyst maintains his stance and still maintains a Buy recommendation for Microsoft, setting the price at USD 520.
  • The Piper Sandler analyst maintains his stance and continues to maintain an “Overweight” rating on Microsoft, setting the stock price at $465.
  • The Truist Securities analyst, in line with his rating, maintains a Buy recommendation for Microsoft and a target price of $600.
  • The BMO Capital analyst has decided to maintain an “Outperform” rating on Microsoft shares. The current price target for the stock is $500.
  • The analyst from Argus Research, consistently maintaining his rating, maintains a Buy recommendation for Microsoft and a target price of $526.

Options trading comes with greater risk and potential reward. Smart traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay up to date on the latest Microsoft options trades with real-time alerts from Benzinga Pro.