![]() ![]() In other words, investors are attracted to these call options, likely indicating an initiating trade on the bullish side. This level of activity is unusual since the volume of 1,075 contracts is over 3.3x the existing open interest (number of contracts outstanding). This call option activity traded for 84 cents per call option. MSFT Call Options - Expiring 5/19/23 - Barchart Unusual Stock Options Activity - May 10, 2023 Today, the Barchart Unusual Stock Options Activity Report shows that 1,075 call options that expire on May 19 traded at the $317.50 strike price, which is just 2.1% over today's price $310.84 per MSFT share. That is likely why there has been large unusual activity in MSFT stock options. The bottom line is that Microsoft stock will likely benefit from FCF growth, dividend hikes, and its share buybacks over the next year. This is because Microsoft has raised its dividend per share each year for the past 18 years. Since this is the third quarterly dividend at this level, investors can expect a dividend hike after the next dividend payment. That is just over half of its FCF level of $17.8 billion (55%), and shows that Microsoft has plenty of room to both increase its dividend and its share repurchase program.įor example, Microsoft pays out dividends of 68 cents per quarter or $2.72 annually, which is less than 29% of analysts' forecasts of $9.60 in EPS for this year. In fact, the company spent $4.6 billion on share buybacks and $5.1 billion on dividends during the quarter or $9.7 billion total. That is well within its typical variance and shows that the company can easily afford its dividends and buybacks. After deducting a one-time tax payment it is down just 5% YoY, according to Amy Hood, CFO, on the conference call. Moreover, free cash flow (FCF), although 11% lower than last year, was still strong at $17.8 billion for the quarter. For example, earnings per share (EPS) came in at $2.45, which was 22 cents higher or 9.9% higher than analysts had forecast, according to Seeking Alpha. In fact, Microsoft beat earnings and revenue expectations with its Q1 earnings release on April 25. This indicates investors have a bullish view on MSFT stock, especially after its stellar Q1 results. This was a fairly large bullish call play that, at least upon first inspection, isn’t tied to any other spreads or trades.Unusual options activity today in Microsoft ( MSFT) call options today has increased as seen in a Barchart Unusual Stock Options Report. Specifically, someone bought the out-the-money calls, spending just over $10 million in premium. That’s after a boatload of January 2024 $37.50 calls hits the tape on Dec. ![]() ![]() Sitting at the top of our weekly flow leaderboard is VF Corp. So keep that in mind when buying or selling options - don’t blindly follow unusual options activity. In all, more than $875,000 worth of premium.ĭespite all the short-term call buying, shares plunged more than 40% on Dec. 16th and $180,000 worth of the $6.50 calls expiring on Dec. 9th, more than $253,000 worth of the $7 calls of the same expiration, $184,000 worth of the $7 calls expiring on Dec. That included buying $260,000 worth of the $6 calls expiring on Dec. 6th, traders were peppering the short-term calls. In fact, it looks like they did so a bit prematurely. Rumors are swirling about whether Carvana ( US:CVNA) can survive as a standalone company, but that’s not stopping traders from snapping up calls.
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