Investors Buy Long-Dated Microsoft Call Options in Huge Volumes - A Very Bullish Signal

The article says institutional investors are buying long-dated Microsoft call options in unusually large volume, signaling strong bullish expectations for MSFT over the next several months. The highlighted trade involves calls expiring November 20, 2026 with a $580 strike, more than 44% above the stock’s midday price of $402. The author argues the activity is consistent with Microsoft’s implied undervaluation based on strong free cash flow projections and rising analyst price targets. Microsoft has traded mostly sideways for two months despite a recent peak near $460.52 on June 1 and its fiscal Q3 earnings on April 29. The piece suggests MSFT could be worth roughly 44% more, implying a target around $580, and notes analysts’ average targets are in the mid-$550s to high-$570s. Market impact: the article frames MSFT as a bullish options/valuation setup rather than a short-term momentum trade.