Dan Nathan Sees Unusually High Bullish Options Activity In Microsoft

On

, Dan Nathan spoke about unusually high options activity in

. Nathan said that the company is reporting earnings on April 23 and the options market is implying a 3.5 percent one-day move on Friday after the event. The options volume was 2.5 times higher than the average daily options volume and the call options outnumbered puts 2 to 1. When the stock was trading at $42.62 a trader bought 25,000 contracts of the May 44 calls for $0.47. Nathan noticed that these calls were marked as closing and he believes that the trader had sold some call options against a long stock position and since the stock reacted positively on Monday, he or she doesn't want to limit the upside potential.