Options Traders Expecting Microsoft Rally, Ahead Of Tech Giants Reporting Earnings

Options Traders Expecting Microsoft Rally, Ahead Of Tech Giants Reporting Earnings

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that trading on Microsoft Corporation MSFT on Monday implied a move of about 5.4% by the end of the week. This is higher than the average 3.9% in the last eight reported quarters, he added.

Check out other stocks making moves in the premarket.

There were buyers of 11,120 of the October 28 weekly 250 calls at an average price of $4.34 per contract, Khouw mentioned. Traders expect shares of Microsoft to breach the 250 strike price by Friday expiration, he stated. There was also “a lot of activity in the 260-calls and 245’s as well,” Khouw added.

MSFT Price Action: Shares of Microsoft had risen by 2.12% to close at $247.25 on Monday.

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Posted In: CNBCMichael KhouwOptimize AdvisorsLong IdeasOptionsMarketsMediaTrading Ideas