Smart Money Is Betting Big In MSFT Options

Investors with a lot of money to spend have taken a bearish 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 189 uncommon options trades for Microsoft.

This isn't normal.

The overall sentiment of these big-money traders is split between 37% bullish and 46%, bearish.

Out of all of the special options we uncovered, 80 are puts, for a total amount of $6,771,163, and 109 are calls, for a total amount of $12,018,892.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $125.0 to $660.0 for Microsoft during the past quarter.

Volume & Open Interest Trends

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 $125.0 to $660.0 in the last 30 days.

Microsoft Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

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

• Trading volume stands at 18,807,512, with MSFT's price down by -1.35%, positioned at $398.55.
• RSI indicators show the stock to be may be oversold.
• Earnings announcement expected in 58 days.

What The Experts Say On Microsoft

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $509.8.

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 $530. * An analyst from Mizuho persists with their Outperform rating on Microsoft, maintaining a target price of $500. * An analyst from Cantor Fitzgerald downgraded its action to Overweight with a price target of $509. * In a cautious move, an analyst from RBC Capital downgraded its rating to Outperform, setting a price target of $500. * An analyst from UBS persists with their Buy rating on Microsoft, maintaining a target price of $510.

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.