Microsoft Corp (NASDAQ:MSFT) is off 2.1% to trade at $530.40, despite the 'Magnificent 7' name reporting fiscal first-quarter earnings beat of $3.72 per share on revenue of $77.7 billion. Operating income also increased by 24% year-over-year to $38 billion. Capital expenditures' focus on AI are weighing, however, as the company reported a 74% amid the ongoing OpenAI investment.
On Monday, MSFT came within a chip shot of its July 31 record high of $555.45. Now, the stock has filled that gap to the downside, though its 80-day moving average has contained steeper pullbacks since September. The shares have added 25% in 2025.
Call traders have been swarming the equity. At the at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MSFT sports a 50-day call/put volume ratio of 2.19 that ranks in the 94th annual percentile. Plus, the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.56 sits in the 8th percentile of annual readings.
That trend continues today, with 325,000 contracts traded already, four times the average intraday amount and more than double the number of puts exchanged. The November 485 call is the most popular.
