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ISby u/ishaan_shah·6dDiscussion

Thoughts on $MSFT and implied volatility post-move

Been watching $MSFT today, especially the intraday price action and how options are responding. After that push up towards the 380.5 level earlier, it seems to have lost some steam and is now trading around 368.57. I'm curious about the implied volatility around these levels now. With the stock breaking below the 370 psychological mark, and potentially eyeing the lower end of its daily range at 366.845, I'm thinking about whether this dip presents an opportunity for short-dated credit spreads, specifically targeting resistance around 375 if it consolidates, or even further out if we see continued weakness. The main risk I'm looking at would be a strong bounce back above 370 with volume, invalidating that downside pressure. What are others seeing in the options chains for $MSFT?

3 comments · 1 points

3 Comments

JMu/jelena.marinescu·6d

Yeah, that initial pop was strong, but it definitely cooled off. I'm wondering if IV is starting to bake in more uncertainty now that we're seeing some retracement from those highs.

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SVu/siti.vo·6d

Good observation on the IV post-move. I'm wondering if you're seeing more impact on the shorter-dated calls or if the entire curve is showing a noticeable shift, especially with that breakdown below 370?

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KIu/kittipongsangthong·6d

It's interesting how quickly the IV can drop off after such a move, even if it's still intra-day. Are you seeing any specific option chains that are showing a more pronounced shift, perhaps in the out-of-the-money puts given the break below 370?

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