Microsoft Corp (MSFT) $31.38 +0.42%

| February 21, 2012 | 0 Comments More

Microsoft (MSFT) adds a dime to $31.35 and is one of 20 Dow stocks moving higher, as the slow grind on Wall Street continues. A noteworthy options trade on the software giant is Jun 23 – 25 (2X1) put ratio spread, sold at 4 cents, 15000X on ISE. Data from the exchange indicate the strategist bought 1, sold 2, and opened a new bearish position in MSFT today. This spread is deep OTM with a max payout if the stock is at $23 at the June expiration, or 26.7% below current levels. Separately, more than 10,000 Jun 29 puts traded on the stock, including a sweep of 9,448 for 93 cents, which is an opening buyer. 77,000 puts and 48,000 calls now traded in MSFT and levels of implied volatility have eased 1.5 percent to 19.5. The stock is up more than 20% in 2012 and not far from the 52-week high of $31.29 set Thursday. Still, open interest in MSFT options fell sharply after the Jan expiration and the total of OI of 2,981,776 contracts is in the 2 percentile for the past year.

Category: All Stocks, Large Cap Stocks, Software & Computer Services

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About the Author (Author Profile)

Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.