Microsoft Bull Closes $36 Million in Call Spreads Ahead of Dec 2027 Expiry

A large Microsoft bull recently closed two long-dated bullish call spreads for a combined credit of $36 million. The trades, which spanned over 30,000 call contracts, still had more than a year left to run before their December 2027 expiry.

The participant unwound the positions, taking money off the table rather than waiting to see if Microsoft clears the upper strike by expiry. While one trader's exit is not necessarily a signal on its own, it is worth considering in light of Microsoft's recent performance and fundamentals.

According to CNBC, Microsoft's Azure revenue was up 43% year-over-year, and copilot adoption is improving with 30 million paid seats. The company reported revenue of $90.01 billion in fiscal Q4 2026, beating estimates by 2.71%, and non-GAAP EPS of $4.74 was the fifth consecutive beat.

The capex bill is a real concern for Microsoft, with the company spending $115.948 billion on capital expenditures in fiscal 2026, up 79.62%. However, management guided FY2027 capex to roughly $175 billion after an accounting shift, which some see as flexible due to the short-lived nature of CPUs and GPUs.