Microsoft (MSFT) notched a new 52-week high this morning, but is now down 3 cents to $31.84 and moving lower along with 20 other Dow stocks. Recent options trades on the software giant include a Jan 27 – 32.5 put spread, apparently bought for $2.10, 7000X on PHLX. Looks like a possible spread purchase and a bet that MSFT will give back some of its recent gains in the months ahead. Separately, a bearish ratio risk-reveral was initiated on Microsoft after one investor sold 1,000 Jul 32 calls on the stock at $1.50 to buy 3,000 Jul 26 puts at 36 cents. Although MSFT is up 22.3 percent year-to-date and setting 52-week highs, some of the recent options order flow has been decidedly bearish, including deep OTM March put buyers (see 2/24 color) and June put ratio spreads (see 2/21 color).
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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.