Market News

November 23, 2016  Wed 5:16 AM CT

A large trader apparently believes that downside potential is limited in Microsoft.

OptionMonster's monitoring systems detected the sale of 15,000 March 55 puts in one print for $1.01 yesterday. This is clearly a new position, as open interest in the strike was only 557 contracts before the trade appeared.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)

MSFT rose 0.43 percent to $61.12 yesterday and is up 5 percent in the last three months. The software giant is scheduled to announce quarterly results after the close on Jan. 26.

Overall option volume was about average in MSFT yesterday.

News Archives


The fastest money in the market VIEW FULL REPORT

Education & Strategy

From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

More education articles »