$MSFT bulls score more profits overnight

Bullish option traders doubled their money overnight on upside positions in Microsoft (MSFT) today for the second session in a row.

Yesterday morning on Mar. 30, Market Rebellion’s Unusual Activity scanners identified the purchase of 8,000 Weekly $165 calls expiring on Apr. 3 for $0.87 to $1.75 with shares at $156.25. This was clearly a new position, as volume was well above the strike’s previous open interest of 1,670 contracts.

Those calls traded for as much as $3.60 so far today, at least double their purchase prices. The stock rose 5.37% in the same time frame, showing how options can far outperform their underlying shares on a relative basis.

It is the second winning trade in the name to be posted on Market Rebellion in as many sessions.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

MSFT rose to a session high of $164.78, nearly filling the gap on its daily chart from Mar. 6th, but has pulled back with the broader market since, last off on the session by 0.29% at $159.77. The software giant was maintained as a Buy at Citi this morning, though with a reduction in its price target, from $170 to $167.