Options traders eye divergent moves before Alphabet and Microsoft earnings
· Business · CNBC, Bloomberg
Microsoft is less than 1% below its recent record high while Alphabet is 20% below its May peak, creating a technical bear market scenario for the latter. Market makers anticipate a 5.8% stock swing for Alphabet after its report versus under 5% for Microsoft, with implied moves more than double Alphabet's historical 2.7% average reaction. Options data shows call buying pressure, particularly a $18.5 million purchase of January 360-strike calls on Alphabet, while the put-call ratio remains under 1 for both stocks despite rising put volume. The contrasting technical setups and options positioning set up a key test for the tech sector following the bell.
Why it matters
Traders and investors will face different risk profiles as Alphabet's larger expected volatility could impact portfolio strategies while Microsoft's smaller swing suggests relative stability ahead of its earnings release.
Read the original report — CNBC
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