Microsoft Eyes Another Win on Stock Buyback News

MSFT's board approved a $40 billion share repurchase program

Karee Venema
Sep 19, 2019 at 9:50 AM
facebook twitter linkedin


Microsoft Corporation (NASDAQ:MSFT) stock has made a definitive move higher this morning -- up 1.4% at $140.50 -- on news the tech giant's board of directors approved an 11% quarterly dividend hike and a new stock buyback program of up to $40 billion in share repurchases. MSFT also said its annual investor day will fall on Wednesday, Dec. 4, and unveiled a collaboration with Indian movie entertainment firm Eros International to develop a next generation online video platform.

This morning's upside is nothing new for MSFT, which is up 38.3% year-to-date, second only to Apple (AAPL) as the best Dow stock so far in 2019. The stock's 80-day moving average has served as a springboard for the shares, and today's pop puts Microsoft on track for a third straight gain -- which would mark its longest winning streak since early August.

There's plenty of optimism priced into the outperformer, too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MSFT's 10-day call/put volume ratio of 2.76 ranks in the 93rd annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip.

The September 142 call has seen the biggest rise in open interest over this two-week time frame, with nearly 15,000 positions added. All signs suggest the bulk of these calls were bought to open, meaning options bulls are targeting a breakout above $142 by front-month expiration at the close tomorrow, Sept. 20.

 

 


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 

Partnercenter