MSFT underperformed the Nasdaq last year
Microsoft Corp (NASDAQ:MSFT) is eliminating jobs across departments, though the cuts will only affect 1% of employees. The tech giant said it's prioritizing high-performance talent after a lackluster 2024, with the stock rising only 12% compared to the Nasdaq Composite's (IXIC) gain of 29%. These layoffs are also modest against 2023, when the company let go of 10,000 workers.
MSFT shed 8.9% in the last six months, and kicked off January with a drop to its lowest level since late November. Resistance at the 40-day moving average has kept a tight lid on the shares, but a familiar floor at $410 looks ready keep any additional pullbacks in check.
In the options pits, Microsoft stock has been popular with call traders. This is per its 50-day call/put volume ratio of 2.10 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks higher than 95% of readings from the past year.
Options may be an attractive choice for those eyeing the security, per MSFT's Schaeffer's Volatility Index (SVI) of 20% that sits in the 20th percentile of its annual range. This means options traders now anticipate lower-than-usual volatility expectations.