Microsoft Stock Testing 2 Key Levels as Options Traders Pounce

Microsoft Corp (NASDAQ:MSFT) may seem like an impenetrable giant -- especially around earnings season -- but the ugly truth is tech stock has not logged monthly win since September.

Microsoft stock is up 1.9% to trade at $400.26, testing $400 but below the $3 trillion market cap level. As large cap tech valuations come under fire, Microsoft shares are battling with their year-over-year breakeven level and down are down 17.3% in 2026.

That hasn't bothered options traders one bit. For over a year now, MSFT has landed on Senior Quantitative Analyst Rocky White's list of stocks seeing the most options volume over the past 10 days. In this timeframe, the stock has seen 4.7 million calls and 3.8 million puts traded, with the weekly 2/27 400-strike call and March 490 put seeing the most attention.

The good news for options traders is that the equity tends to exceed volatility expectations over the past year, per its Schaeffer's Volatility Scorecard (SVS) of 87 out of 100.