MSFT – Microsoft Corp. – Buying interest in long-dated call options on software giant, Microsoft Corp., took place late in the trading day with shares of the underlying stock up 2.60% to $25.65 as of 12:40 pm (ET). Bullish options strategists purchased approximately 16,800 calls at the January 2012 $27.5 strike for an average premium of $2.96 per contract. Investors long the calls stand ready to accumulate profits if and when shares of the underlying stock rally 18.75% over the current price of $25.65 to exceed the average breakeven point on the calls at $30.46 by expiration day in January 2012. Options implied volatility on Microsoft Corp. is down 14.2% to 26.92% as of 3:45 pm (ET).
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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