20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
Someone with a lot of money to spend has taken a bearish stance on Microsoft (NASDAQ:MSFT).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with MSFT, it often means somebody knows something is about to happen.
So how do we know what this whale just did?
Today, Benzinga's options scanner spotted 45 uncommon options trades for Microsoft.
This isn't normal.
The overall sentiment of these big-money traders is split between 42% bullish and 57%, bearish.
Out of all of the special options we uncovered, 21 are puts, for a total amount of $834,828, and 24 are calls, for a total amount of $1,574,732.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $120.0 to $290.0 for Microsoft over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Microsoft's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Microsoft's whale trades within a strike price range from $120.0 to $290.0 in the last 30 days.
Microsoft Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| MSFT | CALL | SWEEP | BEARISH | 12/16/22 | $275.00 | $168.9K | 6.2K | 512 |
| MSFT | CALL | TRADE | BULLISH | 01/19/24 | $235.00 | $164.2K | 763 | 52 |
| MSFT | CALL | SWEEP | BEARISH | 10/14/22 | $235.00 | $125.2K | 222 | 343 |
| MSFT | CALL | SWEEP | BULLISH | 10/14/22 | $235.00 | $109.1K | 222 | 941 |
| MSFT | CALL | SWEEP | BULLISH | 09/30/22 | $240.00 | $105.1K | 6.2K | 5.0K |
Where Is Microsoft Standing Right Now?
- With a volume of 5,675,157, the price of MSFT is down -0.25% at $235.82.
- RSI indicators hint that the underlying stock may be oversold.
- Next earnings are expected to be released in 27 days.
What The Experts Say On Microsoft:
- MoffettNathanson downgraded its action to Hold with a price target of $285
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Microsoft, Benzinga Pro gives you real-time options trades alerts.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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