Microsoft Corporation closed at USD 496.88, rising 0.90%.

A wave of bullish options activity swept through Microsoft, headlined by a single $4.47 million bull put spread. With total bullish flow reaching $8.85 million and no bearish flow recorded, the session’s large trades reflected a resilient, medium-term constructive outlook rather than short-term speculation, underscoring conviction that the stock can hold above key downside levels.

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Options Indicators

MSFT’s implied volatility is 27.89%, and with an IV percentile of 40.64%, current option volatility sits in a neutral range rather than at an extreme. The IV/HV ratio of 0.48 suggests implied volatility is running below historical realized volatility, indicating options are not richly priced at the moment and appear relatively reasonable from a valuation standpoint rather than expensive. The Call/Put volume ratio is 1.98.

Large Trades

A bullish bull put spread with a $4.47 million net credit was the standout large trade in MSFT, structured by selling the March 19, 2027 $500.00 puts and buying the March 19, 2027 $350.00 puts. With MSFT referenced at $496.88, the short $500.00 put sat slightly in the money while the long $350.00 put was out of the money, creating a classic premium-collecting bullish spread that profits if the stock holds above the higher strike over time. The trade’s net-credit structure signals an income-oriented bullish stance rather than an aggressive upside chase, while the lower-strike long put limits downside exposure and defines risk.

Overall large-trade sentiment in MSFT was clearly bullish, with $8.85 million in bullish flow versus $0.00 million in bearish flow, leaving a net difference of $8.85 million to the bullish side. The directional judgment is therefore decisively bullish, and the tone of the flow suggests investors were expressing constructive medium- to longer-dated confidence through defined-risk premium-selling structures rather than outright speculative call buying, which points to a view that MSFT can remain resilient and above key downside levels.

Strategy Reference

For those seeking a lower assignment probability, selling a put spread with the short strike further out of the money, such as the 2027 $400.00 put, could align with the bullish flow but with a wider margin of safety, while still mirroring the defined-risk premium-selling approach.