Microsoft Options Market Sees Unusually High Activity with Bullish Bias

Microsoft's (MSFT) options market is witnessing unusually high activity, with over 1.11 million contracts traded by 12:40 PM EDT on September 25.

The call-to-put ratio stands at a staggering 2.53:1, indicating a significant bias towards bullish positioning.

According to the data, the most active strike is the $550 call, with over 6,327 contracts traded and an existing open interest of 59,153 contracts.

This suggests that traders are betting on Microsoft's stock price clearing the $530-$550 range within the next three weeks.

Additionally, the deep put hedges, including the $400 put strikes, are seen as classic tail-risk hedges rather than directional bets. These puts sit approximately 22.6% below the current spot price and are likely institutional protection on large MSFT long positions.