Options imply a surge in Microsoft
The smooth landing of the Blizzard acquisition is not only good for Blizzard, but also good for Microsoft's stock price - although I do not know if there is any other market behind this big order.
This option large order has a total transaction volume of 12,000, with a total transaction amount of about 3 million. From the choice of the exercise price, Microsoft is expected to have a 7.6% increase in the short term. The institutional buying opportunity came on Monday, when Nasdaq announced a lower opening of its weighted stock price, and institutions took the opportunity to attract funding.
For a near-term option with an expiration date of only 37 days, it is a veritable aggressive large order. It is rare in the stable performance of Microsoft's big order, and it is very worth noting.
If you think buy call is too radical, you can also consider selling ATM put$MSFT 20230818 335.0 PUT$ , the annualized rate of return is 27%. Of course, OTM can also be chosen, but I think that for Microsoft such a strong stock risk control is not necessary to control so strict, low risk = low yield, different situations can be flexibly adjusted.
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