Microsoft Options Traders Pile Into $560 December Calls as MSFT Slips 1.24% to $501
By TrendSpider Editor
Microsoft Corporation is seeing a surge of unusual options activity today, with three separate call sweeps targeting the $560 strike expiring December 18, 2026, combining for roughly $1.89 million in premium out of a total $2.07 million in unusual flow across five contracts. MSFT shares are trading
Microsoft Options Traders Pile Into $560 December Calls as MSFT Slips 1.24% to $501
Microsoft Corporation is seeing a surge of unusual options activity today, with three separate call sweeps targeting the $560 strike expiring December 18, 2026, combining for roughly $1.89 million in premium out of a total $2.07 million in unusual flow across five contracts. MSFT shares are trading at $501.00, down 1.24% on the session, sitting in the upper half of its 52-week range of $349.20 to $553.72. The aggressive call buying stands in contrast to the intraday weakness, suggesting certain participants are positioning for a meaningful recovery over the next three and a half months.
Key Drivers of the MSFT Stock Move
- Main Catalyst: Five unusual options contracts were flagged today totaling $2,074,812.80 in premium. Three call contracts at the $560 strike expiring December 18, 2026 accounted for the bulk of activity, with individual sizes of 500, 504, and 500 contracts, each registering open interest utilization of 11%. A put at the $445 strike expiring September 25, 2026 drew attention with an OI utilization of 342%, and a near-term ATM put at the $500 strike expiring September 2, 2026 added $121,000 in premium.
- Bull Case: The three $560 December calls represent a concentrated, high-conviction bet that MSFT can rally more than 11% from current levels before year-end. Combined premium on those calls alone approaches $1.89 million, and the repeat sizing across all three contracts suggests a deliberate, possibly institutional, accumulation rather than a one-off trade.
- Bear Case: The put at the $445 strike with 342% OI utilization is a notable outlier. That contract, expiring September 25, 2026, implies a trader is either hedging or speculating on a steep decline of roughly 11% from current prices within the next three and a half weeks. The near-term ATM put at $500 expiring tomorrow, September 2, 2026, adds a short-term bearish note as well, with $121,000 in premium wagered on downside through the next session.
The conflicting signals in today's flow illustrate a market divided on Microsoft's near-term path. The dominant theme is bullish given the sheer weight of call premium, but the high OI utilization on the $445 put is too significant to dismiss. MSFT remains within striking distance of its 52-week high of $553.72, and the December $560 calls suggest at least some participants expect the stock to push through that ceiling before the end of 2026. Microsoft's ongoing investments in AI infrastructure, its Azure cloud platform, and its integration of AI tools across its product suite continue to be the primary narrative driving institutional interest in the stock. Any macro headwinds or guidance disappointments in the coming weeks could, however, validate the protective put positioning that also appeared in today's unusual flow.
MSFT Unusual Options Activity
Five contracts were flagged as unusual today, totaling $2,074,812.80 in premium across both calls and puts:
- Call | Strike: $560 | Expiry: December 18, 2026 | Size: 500 | Open Interest Utilization: 11% | OTM
- Call | Strike: $560 | Expiry: December 18, 2026 | Size: 504 | Open Interest Utilization: 11% | OTM
- Call | Strike: $560 | Expiry: December 18, 2026 | Size: 500 | Open Interest Utilization: 11% | OTM
- Put | Strike: $445 | Expiry: September 25, 2026 | Size: 743 | Open Interest Utilization: 342% | OTM
- Put | Strike: $500 | Expiry: September 2, 2026 | Size: 500 | Open Interest Utilization: 39% | ATM
The three December call contracts at $560 dominate the activity and reflect a unified directional bet, while the $445 put's 342% OI utilization stands out as an unusually aggressive downside position relative to existing open interest.
MSFT Seasonality
September has historically been a challenging month for large-cap technology stocks, which gives some context to both the protective put activity near current price levels and the willingness of call buyers to look out to December for their upside thesis. The December expiration on the dominant call contracts positions those traders to benefit from any year-end momentum that historically tends to favor the broader market.
MSFT Relative Performance
MSFT is down 1.24% on the session, trading at $501.00 against a 52-week range of $349.20 to $553.72. The stock remains roughly 9.7% below its 52-week high, suggesting room for recovery but also continued uncertainty about whether the prior peak can be reclaimed. The session's decline, while modest, aligns with broader pressure that has weighed on large-cap technology names at the start of September 2026.
More on MSFT
- Microsoft Stock Sees $1.5M Bearish Put Sweep as Unusual Options Activity Flags Caution
- Microsoft Stock Flags Bearish Signal as $1.99M Put Sweep Targets $480 Strike Into January 2027
- Microsoft Bears Load Up on Deep ITM Puts as $4.96M Options Bet Targets $535 Strike
- Microsoft Surges 5.24% as Bulls Push MSFT Toward Upper End of 52-Week Range
- Microsoft Crushes Q4 2026 Earnings With a 12% EPS Surprise, But Shares Slip After Hours
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