MSFT Microsoft (MSFT) options offer exposure to the world's largest software company with excellent liquidity, moderate volatility, and steady growth characteristics.

MSFT's diversified revenue streams (Azure, Office 365, Gaming) create relatively predictable options behavior compared to pure-play growth stocks.

MSFT Options Characteristics

Avg Daily Volume

800K+ contracts

Typical Spread

$0.02-0.05

Typical IV Rank

15-35%

Expirations

Weekly, Monthly, Quarterly, LEAPS

Price Range

$350-450

Correlation

High correlation with tech sector and SPY

Best Strategies for MSFT

Covered Calls

Steady premium on a blue-chip holding

Bull Put Spreads

Bullish income with defined risk

Iron Condors

Range-bound income in low-IV periods

LEAPS Calls

Long-term bullish exposure with leverage

Calendar Spreads

Exploit earnings IV term structure

Cloud Computing Powerhouse

Microsoft's Azure cloud business drives growth expectations. Earnings reactions are typically 3-6%, making MSFT ideal for income strategies and defined-risk directional plays.

MSFT Options FAQ

Is Microsoft good for options trading?

Yes, MSFT offers excellent liquidity with penny-wide spreads, moderate IV (15-35% rank), and predictable earnings reactions. It's ideal for covered calls, cash-secured puts, and income strategies.

How does Microsoft move on earnings?

MSFT typically moves 3-6% on earnings, driven primarily by Azure growth numbers. The stock tends to have lower implied volatility than peers like NVDA or TSLA, making it suitable for defined-risk earnings plays.