Bullish Options Activity in Alphabet and Microsoft Suggests Strong Investor Sentiment
Options trading activity on Wednesday showed a strong bullish bias toward Alphabet (GOOGL) and Microsoft (MSFT), two members of the 'Magnificent Seven' tech stocks. Call options volume for both companies exceeded their 30-day averages by more than 50%, with significant buying pressure observed across multiple strike prices and expirations. In particular, trading in Alphabet was heavily skewed toward calls, with over $260 million in premium traded midday, while Microsoft saw nearly $500 million in options volume, predominantly bullish. The trades suggest that investors are positioning for potential price increases, especially as economic data showed a softer-than-expected inflation print and equities markets improved. Notably, one large speculative trade on Microsoft involved buying deep-in-the-money calls with a breakeven point near $530—just shy of the stock’s all-time high if reached at close.
Topics: Alphabet (GOOGL) bullish sentiment Microsoft (MSFT) Nasdaq options trading