OptionsHouse

Options Trading News

May 24, 2013  Fri 9:13 AM CT

MSFT: SEE CHART GET CHAIN FIND STRATEGIES
Microsoft has been slipping off its highs from earlier this week, but one trader is looking for a floor.

optionMONSTER systems show that the Weekly May 30 puts that expire next week top the option volume in MSFT today. More than 5,500 of those contracts were sold for $0.03 in volume that dwarfs the previous open interest of just 26 contracts.

The put selling is a bet that MSFT will hold above $30 through next Friday. The delta of the puts is just 0.03, suggesting just a 3 percent probability that the stock will be below that strike price at expiration. (See our Education section)

MSFT is down fractionally this morning to $34.04. The software giant has been rallying from below $29 since reporting earnings a month ago, reaching a high of $35.27 on Tuesday.
Share this article with your friends


Related Stories

MSFT

Will Microsoft explore new highs?

May 20, 2015

The software giant has been transforming its business lines, and the bulls are looking for the stock to explore new levels.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Archived Webinar

Education & Strategy

Short synthetic stock

With the use of the calls and puts we can not only create Long Synthetic Stock, but Short Synthetic Stock as well...

View more education articles »