Microsoft Corp (MSFT)

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Microsoft Stock Nears Record Highs Amid Buyback Buzz
By: Schaeffer's Investment Research | September 15, 2021

• The company's latest stock repurchase program could be its largest ever

• Microsoft hiked its dividend by 11%

Microsoft Corporation (NASDAQ:MSFT) yesterday announced the launch of a $60 billion stock repurchase program, which is shaping up to be its largest ever buyback program. In addition, the software maker hiked its dividend by 11%, with quarterly payouts moving up to 62 cents per share. Separately, the company appointed Brad Smith as its vice chair. As a result, MSFT was last seen up 1.4% to trade at $304.06.

Today's positive price actions has Microsoft stock moving back towards its Aug. 20, all-time high of $305.84. Late last week, the security bounced off the 40-day moving average and now boasts a 34.8% year-to-date lead.

Meanwhile, there's plenty of bullishness taking place in the options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Microsoft stock sports a 10-day call/put volume ratio of 2.32, which stands in the 72nd percentile of its annual range. This means long calls have rarely been more popular during the past year.

Now could be a good time to weigh in on MSFT with options, too. The stock is seeing attractively priced premiums at the moment, per the security's Schaeffer's Volatility Index (SVI) of 19%, which sits in the 18th percentile of its annual range.

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