Alphabet, Microsoft options trades signal bullish bets as Nasdaq nears record highs

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Alphabet, Microsoft options bullish

Highlights

Options volume in Alphabet and Microsoft exceeds 50% above 30-day average as both stocks rally after positive U.S. economic data, with Alphabet up 2.7% and Microsoft up 1.8%.
Alphabet options flow is heavily bullish, with nearly 150,000 calls bought and only about 50,000 puts bought, and $260 million in premium traded by midday, mostly in calls.
In Microsoft, traders buy over 130,000 calls versus fewer than 52,000 puts, with $500 million traded in options and a notable $12 million bullish spread targeting a new closing high near $530.

Bullish options flows build in both stocks

As reported by CNBC, options volume in Alphabet and Microsoft runs more than 50% above the 30-day average on Wednesday as equities strengthen after upbeat U.S. economic data in the morning. Alphabet holds a 2.7% gain and Microsoft adds 1.8%, even as bond prices roll over later in the session.

In Alphabet, options flow data compiled across Cboe LiveVol, SpotGamma and Barchart shows especially one-sided bullish positioning. Total call volume is more than double put trading, with nearly 150,000 calls likely initiated by buyers, compared with fewer than 100,000 calls sold and about 50,000 puts bought.

Among the 20 biggest Alphabet options transactions by dollar value, 14 are bullish, four are neutral and two are bearish. More than $260 million in premium changes hands by midday Wednesday, with over $200 million tied to calls.

Large trades point to upside targets

The biggest Alphabet purchase is for in-the-money 250-strike calls expiring next June in GOOGL, while traders also show heavy interest in the 370-strike calls expiring Nov. 20 and the near-the-money 350-strike calls expiring Friday. The 370-strike calls trade at $11.40 each and require about a 9% rally to become profitable.

In Microsoft, traders likely buy more than 130,000 calls, versus fewer than 52,000 puts. Although they also sell roughly as many calls, the net delta exposure from the day's trading suggests investors still prefer upside in the shares.

Nearly $500 million in Microsoft options trades, including about $400 million in call premium, of which roughly $220 million is likely purchased. One standout position in the Dec. 18 expiry involves a trader spending $12 million on 3,000 in-the-money 500-strike calls while selling around $2 million of 600-strike calls with the same expiry, creating a bullish spread with a breakeven near $530, about 2.3% above current levels and enough for a new closing high in Microsoft.

Our earlier coverage of midday U.S. stock moves highlighted how earnings updates, analyst rating changes, and a U.S. court patent ruling drove sharp intraday swings across multiple names. It noted outsized moves such as Liquidia’s plunge after an infringement finding and United Therapeutics’ surge, alongside big reactions to guidance and downgrades in stocks like Rogers and Moderna.

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