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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.
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Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

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