A Closer Look at Microsoft's Options Market Dynamics

Investors with a lot of money to spend have taken a bullish stance on Microsoft MSFT.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with MSFT, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 36 uncommon options trades for Microsoft.

This isn't normal.

The overall sentiment of these big-money traders is split between 44% bullish and 44%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $252,456, and 31 are calls, for a total amount of $1,473,346.

Expected Price Movements

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $285.0 to $695.0 for Microsoft during the past quarter.

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 $285.0 to $695.0 in the last 30 days.

Microsoft 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

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 6,777,549, the price of MSFT is up by 1.35%, reaching $425.84.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 82 days from now.

Expert Opinions on 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 $522.6.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Morgan Stanley persists with their Overweight rating on Microsoft, maintaining a target price of $548. * Maintaining their stance, an analyst from Truist Securities continues to hold a Buy rating for Microsoft, targeting a price of $600. * An analyst from UBS has decided to maintain their Buy rating on Microsoft, which currently sits at a price target of $500. * Maintaining their stance, an analyst from Goldman Sachs continues to hold a Buy rating for Microsoft, targeting a price of $500. * An analyst from JP Morgan has decided to maintain their Overweight rating on Microsoft, which currently sits at a price target of $465.

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.