A Microsoft Bull Just Closed $36 Million in Call Spreads That Do Not Expire Until 2027

Unusual options trading activity was observed in Microsoft Corporation (NASDAQ: MSFT) after a single market participant closed out two large, long-dated bullish call spreads expiring in December 2027 for a total credit of approximately $36 million. The transaction spanned more than 30,000 call contracts across 595/705 and 610/725 strike spreads. While taking substantial profits off the table well ahead of expiration may indicate near-term caution or capital reallocation by a large trader, overall market sentiment remains constructive, with a December 2027 put/call ratio of just 0.02. Fundamentally, Microsoft continues to demonstrate strong cloud and AI momentum, with Azure expanding into a $100 billion annual run-rate business after 43% year-over-year revenue growth. Microsoft's commercial remaining performance obligations surged 84% to $678 billion. Although surging capital expenditures—which totaled $115.95 billion in fiscal 2026 and are projected to reach $175 billion in FY2027—have exerted pressure on free cash flow and gross margins, analysts maintain a bullish consensus target of $606.12, reflecting expected long-term enterprise AI monetization.