Mike Khouw Sees Unusual Options Activity In Microsoft Corporation

, Mike Khouw said that the options market is implying a 5.6 percent move in

, one day following earnings and it moves 4.3 percent on average. He added that there were twice as many bullish bets than bearish ones on Wednesday in the name. The most active options were the February 56 calls as almost 5,000 contracts were traded at $0.43. Buyers of these options are betting that the stock is going to trade above $56.43 or more than 10 percent higher from the current closing price at the February expiration. Khouw believes that options in

are currently expensive and he would use a call spread to make a bullish bet.