Options Bulls Target Microsoft Stock Before Earnings

Options traders are loading up on Microsoft Corp (NASDAQ:MSFT) ahead of its fiscal fourth-quarter earnings report, scheduled for after the close on Wednesday, July 29. Analysts expect earnings of $4.21 per share on revenue of $87.42 billion, representing year-over-year growth of 15.3% and 14.4%, respectively. Investors will be looking for updates on Microsoft's AI initiatives, including Copilot, Azure AI services, and infrastructure investments. On the charts, MSFT recently bounced off its June 25, 52-week low of $349.20, but faces pressure at its 60-day moving average. The stock is currently up 2.1% at $401.95, but down 16.9% year-to-date. Options traders are pricing in a significant 13.7% post-earnings move, considerably higher than the stock's average post-earnings swing of 5.2% over the last eight quarters. Historically, Microsoft has closed lower after six of its last eight quarterly reports. However, options traders appear bullish, with a 50-day call/put volume ratio of 3.35 ranking higher than 96% of readings from the past year. Over the past two weeks, Microsoft saw over 4.8 million calls and more than 1.6 million puts exchanged, with the most activity at the July 400 call.