Options Spike in Microsoft (MSFT, YHOO, GOOG)

Posted in General 
June 13th, 2008

It is rather no large surprise that we are seeing a huge volume spike in the shares of Microsoft Corp. (NASDAQ: MSFT) today.  Now that the company has walked away from Yahoo! Inc. (NASDAQ: MSFT) and declared its merger interest as dead it is getting relief buyers back in.  At 2:15 PM EST we have already seen more than 100 million shares trade, which is north of the 68 million shares on average.  This will put the stock in a spot to top yesterday’s 113.9 million shares.

Supposedly, Microsoft is still interested in speaking with Yahoo! about other pacts besides a merger despite the pact between Yahoo! and Google (NASDAQ: GOOG).  Whether or not that is the case is anyone’s guess and the answer may be different by tomorrow.

As a result of the Yahoo! pact with Google, we have also seen high price weighted volume in Google stock with a 3% gain to $569.82 on 4.6 million shares.  Unfortunately that is on lackluster trading volume of only 4.6 million shares.  Google trades an average of 5.7 million shares a day.

The unusual activity in Microsoft is more in the stock options than in the actual stock because it is the JUNE 2009 Call options.  We have seen some high volume in the following contracts:

  • 27,000+ contracts of the JUNE $29 CALLS
  • 32,000+ contracts of the JUNE $20 CALLS

Farther out there are also active contracts trading today:

  • 22,000+ contracts of the JULY $30 CALLS

Jon Ogg
June 13, 2008 (2:16 PM EST)

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