Microsoft Stock Hits Record High After Bullish Analyst Attention

MSFT topped out at a record high earlier today

Jun 1, 2018 at 10:37 AM
facebook twitter linkedin


Evercore ISI raised its price target on Microsoft Corporation (NASDAQ:MSFT) to $120 -- a 21% premium to last night's close at $98.84, and record-high territory for the Dow stock. This comes just days after MSFT surpassed Alphabet (GOOGL) in terms of market share. Heading into today's trading, the two tech titans were running neck and neck, sporting market caps of $759.41 billion and $758.77 billion, respectively.

Today, MSFT stock is up 1.2% to trade at $100, earlier reaching a fresh record high of $100.03. This just echoes the stock's longer-term trajectory, too, with Microsoft shares up 42% year-over-year, lifted by steady support from their 80-day moving average.

Against this backdrop, most analysts are already bullish on MSFT. Of the 26 brokerages covering the shares, 21 maintain a "buy" or better rating. Plus, the average 12-month price target of $110.85 represents a 12% premium to current trading levels.

Short-term options traders seem to be optimistic, too, per the stock's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR) of 0.45. What this means is that near-the-money call open interest nearly doubles put open interest in the standard June options series.

Drilling down, the June 95, 97.50, and 100 calls make up MSFT's top three open interest positions, where more than 163,000 contracts collectively reside. Data from the major options exchanges confirms significant buy-to-open activity at each strike, indicating options traders are betting on even higher highs for Microsoft stock over the next few weeks.

 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners