Options traders have been buying more calls than puts on Microsoft ahead of earnings, implying that they expect the stock to beat analyst expectations. It's close to the bottom of its recent trading range right now, making it a good buy today for a potential pre-earnings pop as well as a post-earnings bump. Popular strike prices are 140, 142.50, and 145....
MSFT is set to report Wed oct 23 after close and I have set up an Iron condor, based on 5% Implied move. On Oct 18th, I STO Nov 1 Calls 142/144 and Nov 1 STO 132/130 Puts and received 90c credit. MSFT has not missed earnings in 13 quarters. It has been coiled for awhile, so it my move more than normal. GL!
Some of the bigger names seem to be traded with a "sell the news" response to earnings. See FB, AAPL, NFLX, for examples. All popped to highs at the open and were sold off for the next day or two, or more. Will we see the same on MSFT? If it does pop to the top, I've got 145 as a first target. If it pushes past 149, there I would take the loss, if I got short....
Even with recent bounce we can see all technical indicators are under-perform stocks performance so massive drop is coming or strong Jump to new all time record ..
MSFT is trading near its highs.
Up top, we find a very nice ascending triangle pattern.
Despite the selling pressure that the Stock has been facing for past two months, The price still comfortably reclines on this up trend line.
We also see multiple Low rejections in the candles as the price declines toward this Trend line (Marked in Green arrows).
And for...
Apple is looking to regain market cap from Microsoft after its 6 month rush. apple look to release new iphone priced at 399
Major company moves have been done by apple with many new products that came out so recently and many to come that are new to apple completely. Earning coming out soon with apple ready to beat exceptions setting up to break all times high...
MSFT is currently not in either sell or buy zone but because if the upcoming event we might have a jump and we have to see if it breaks the resistance ... if it does then we are in a good long position and if hits the resistance then we can sell for the next wave!
After breaking down the trend line its clear bearish pattern should drop to 131 then based on volume we can see it will extend to 123 -111 or bounced from there targeting new all time highs..
Indicators are all signalling a breakout is on the way in MSFT after consolidating since June.
MA support is strong.
Middle bollinger band no support.
Break above $142 bullish
Average analysts price target $155
Average analysts recommendation BUY
P/E ratio 27
Yield 1.47%
Short interest .61%
Company profile
Microsoft Corp. engages...
