Shares of Microsoft Corporation MSFT declined by 1.85% to close trading Friday at $296.03 amid a broader tech selloff.
On CNBC's "Options Action," Tony Zhang said that Microsoft has a “fairly bulletproof business and there is an opportunity going into earnings.” The company’s earnings call is scheduled for Tuesday.
Microsoft’s chart shows the stock broke out a year ago from the $230 level and has been on a “pretty strong uptrend,” Zhang noted. “Since the peak, it has pulled back about 15% back to that channel,” he added.
Also See: Microsoft's 10 Biggest Acquisitions Of All Time: Activision, LinkedIn And More
Microsoft’s stock has underperformed its sector since November, Zhang said. He expects a rebound in the stock, with the earnings announcement being a catalyst.
The options market is implying a move of about 5.2%, versus the 2.6% average over the past eight quarters, Zhang added.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.