The bulls piled into Microsoft as its shares pulled back on Friday.
optionMONSTER’s Heat Seeker system lit up with big volume in the January Weekly 37 calls, which expire on the first Friday of the New Year. A block of 21,000 contracts was bought for ask price of $0.89 in volume far above the strike’s previous open interest of just 1,177, clearly showing that new money was put to work.
These long calls lock in the price where the software giant’s stock can be purchased no matter how far it might climb. They could generate significant leverage in a rally but will expire worthless if shares remain below $37 through Jan. 3.
— Option Monster