Microsoft (NASDAQ:MSFT) stock is moving higher this morning, after Pershing Square's Bill Ackman revealed a new stake in the tech giant, calling the company an attractive AI play following its post-earnings pullback. Ackman did not disclose the size of the positions. MSFT was last seen up 3.2% to trade at $422.42.
Underlying support at the equity's 60-moving average and $400 floor have emerged as support, the former of which came previously capped the stock's late-January gains. The $440 ceiling is keeping a tight lid on gains, however, with MSFT off 13.4% in 2026.
Call traders are piling on MSFT with 605,000 calls across the tape this morning, triple the average daily pace. The most popular option by far is the May 420 call, set to expire after today's close.
Plus, MSFT's Schaeffer's Volatility Scorecard (SVS) sits at a high 90 out of 100. This means the stock has tended to exceed option traders' volatility expectations over the past 12 months.
