Alphabet, Microsoft options traders bet on big gains ahead
by@CNBC
Summary
Options traders are making significant bullish bets on Alphabet and Microsoft, both part of the "Magnificent Seven" stocks, as the Nasdaq approaches all-time highs. On a day when economic data showed a softer inflation print, options volume surged for both companies, with Alphabet's call options outpacing puts by more than two to one, reflecting strong confidence among traders. Specifically, over $260 million was associated with Alphabet calls, and more than $400 million was linked to Microsoft, highlighting a preference for both stocks to rise. This uptick in trading activity comes as technology stocks have been favored amid a favorable market environment.
Tokens
$GOOGL$MSFT
Analysis
Alphabet: Alphabet Inc. is the parent company of Google, operating core businesses in internet search and advertising, cloud computing, and artificial intelligence development. It ranks among the Magnificent Seven stocks where options traders executed heavily one-sided bullish call purchases. Data aggregators tracked this activity as equities held gains following positive economic reports. Barchart: Barchart provides real-time financial data feeds, options quotes, and market analysis tools. The service supported compilation of volume comparisons and transaction details for Alphabet and Microsoft options activity. Microsoft: Microsoft Corporation develops software platforms, cloud infrastructure via Azure, and AI technologies. Traders showed preference for rising prices through net bullish options positioning, including concentrated purchases of deep in-the-money calls. The activity occurred alongside broader market firmness in major technology names. SpotGamma: SpotGamma specializes in options analytics, including gamma exposure and dealer positioning insights. Its information helped evaluate the unusually slanted bullish stance among large-dollar transactions highlighted in the news. Cboe LiveVol: Cboe LiveVol supplies options market data, volume statistics, and flow analytics as part of Cboe Global Markets. Its datasets contributed to identifying elevated call volume and directional bias in the reported trades for the featured stocks. Market Context: Technology stocks attracted concentrated call buying while major indices traded near recent peaks. Options Activity: Bullish options positioning in select Magnificent Seven names emerged as equities responded to incoming economic information.
Categories
techmacro