Coffee Sipping Big Board Stocks

[timhyma]

Microsoft is attracting a huge bullish position despite falling on weak quarterly results this afternoon.

optionMONSTER's market scanner shows that 20,000 August 55 calls were purchased in two prints for $1.30 today. Volume was more than 12 times the open interest in the strike, indicating that this is a new position.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

MSFT is down 7.22 percent to $51.76 in afternoon trading after missing quarterly numbers last night but is up 11 percent in the last three months.

Overall option volume was 4 times greater than average so far today.