By Nauman Khan
Publication Date: 2026-10-27 18:28:00
This article first appeared on GuruFocus.
Microsoft (NASDAQ:MSFT) is heading into its quarterly results with options traders bracing for a sharp repricing, as contracts tied to the software maker point to a possible $28 move by the end of the week.
Options expiring Friday imply a potential move of around 5% from Monday’s closing level, reflecting uncertainty over the earnings outlook and the payoff from Microsoft’s AI investments.
Trading was not limited to bets on one direction. Calls at $540 drew 5,131 contracts, while the $550 strike recorded 3,707. The activity suggests some traders are positioning for gains beyond current levels, with additional interest in calls at substantially higher strikes.
Risk protection also featured in the market. Put options at $460 recorded 4,815 contracts, while contracts at $500, $507.50 and $520 each saw more than 1,100 traded. Those positions could help investors manage…
