The Microsoft shares have been hiked up by 1.08% and currently it is trading at $27.16. Over the past five months, the stock has been moving largely higher and as a result it is currently trading above the 50-day and 200-day moving averages.
The Options traders are already buying calls on the name starting from 8th of December onwards. Few days back, the January 2012 $37.50 call was purchased 67,343 times (now total of 75,000), on the offer, which was followed by the purchase of 39,750(now total of 40,000) January 2013 $35.00 calls, also on the offer.
These all appears to be nothing else other than just opening purchases. As open interest were enough to cover in both
In a recent development, Microsoft has traded 196,000 calls so far versus 50,000 puts.
It has been seen that for the second consecutive Microsoft (MSFT) is seeing some notable bullish option activity. On 8th of December the volume is 2x the daily average and once again it is out in the LEAPS that big blocks have traded.
Another notable development also attracts the eyeballs is July activity in which the $29 call has traded 13,000 contracts in what looks like opening purchase. This action was similar to the one done on 8th December when the Jan12 $32.50 calls saw a 50,000 contract block get bought and added to open interest and the July $28 calls saw 8,100 contracts bought and added to open interest.
High reliability which is the basic index of the American economy and it includes almost all the strongest companies, such as Boeing, General Electric, General Motors and others, world renowned and reputed leaders not only American, but also world economy.
The probability of bankruptcy of these companies is smallest and it also means that having taken shares of these companies, there is nothing to lose in the investment and also a long term prospect to get a big High yield are the shares of these companies in long-term prospect bring in the solid income. And the last one is High liquidity – i.e. the share holder can sell at any moment the shares block within several seconds.
But as a matter of fact it cannot be avoided that the share purchase is always some with a certain risk, but risks at share purchase from an index Dow-Johns is lower than risks at the share purchase, not entering into this index.
As many of the options available the urgent exchange tool derivative of shares is the best one. In this option purchasing (call) means right purchasing in the future to take share at determined price so as everyone knows it goes like that everything is possible with smart attitude which includes small business grants also.
So as a result Microsoft is moving in the right direction as a move towards more profit Microsoft Corporation has engaged itself in developing, manufacturing, licensing and supporting a range of software products and services for different types of computing devices.