Here's What This Options Expert Says Microsoft Needs To Excite Investors

Nic Chahine is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Nic Chahine, an options expert and manager of Create Income With Options Spread, discussed what Microsoft Corporation MSFT needs to do to or say during its earnings report to make investors "excited" over owning the stock.

Chahine began the discussion by noting that his view on a stock's move post earnings is always the same.

"The move on the report itself is completely arbitrary and no can foresee that," the options pro said. "It's basically a coin flip how the market is going to react regardless of the numbers."

Chahine appreciates Microsoft's products, but that is irrelevant as the market will decide Microsoft's move based on what it has to do: "share and excite people." He brought up the sell-off in shares of International Business Machines Corp. IBM as an example, noting that investors would have bought the stock (rather then sell) if it had a "story" or "message" to share."

"I don't know what they [IBM] do anymore," he continued. "Microsoft needs to give us some guidance to get people excited. People will buy a story, look at GoPro..it's going to do this, it's going to do that."

Moving on to the options market, Chahine stated that options traders have made large gains during Google Inc GOOG GOOGL recent surge following its earnings report. As such, market participants may be hoping to make similar gains following Microsoft's earnings print. This does nothing but drive up options premiums, making it more difficult for investors to profit from any move, unless they entered a position a month ago.

Bottom line, Chahine concluded he doubts shares of Microsoft will surge like Google did following its earnings print.

"For me, I wouldn't want to touch it."