Spotlight on Microsoft: Analyzing the Surge in Options Activity

Deep-pocketed investors have adopted a bullish approach towards Microsoft MSFT, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in MSFT usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 27 extraordinary options activities for Microsoft. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 48% leaning bullish and 37% bearish. Among these notable options, 2 are puts, totaling $84,346, and 25 are calls, amounting to $1,579,119.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $200.0 to $487.5 for Microsoft during the past quarter.

Volume & Open Interest Trends

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Microsoft's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Microsoft's significant trades, within a strike price range of $200.0 to $487.5, over the past month.

Microsoft Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

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).

Having examined the options trading patterns of Microsoft, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Present Market Standing of Microsoft

• Currently trading with a volume of 11,056,768, the MSFT's price is up by 1.05%, now at $491.08.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 35 days.

Professional Analyst Ratings for Microsoft

Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $585.0.

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 Citigroup has decided to maintain their Buy rating on Microsoft, which currently sits at a price target of $605. * Consistent in their evaluation, an analyst from Wells Fargo keeps a Overweight rating on Microsoft with a target price of $565.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Microsoft, Benzinga Pro gives you real-time options trades alerts.