Markets

Negative tone lingers in Microsoft

Microsoft has struggled all year, and sentiment remains negative.

optionMONSTER's tracking systems detected the sale of 26,000 November 47 calls for $0.96. Volume surpassed previous open interest of 16,052 contracts, which indicates new positions were initiated.

Short calls generate income and fix the price where investors must sell shares. The strategy is used when they think that upside is limited and reflects a lack of enthusiasm for the stock. It follows bearish put buying on Sept. 8 and Sept. 4 . (See our Education section)

MSFT fell 1.87 percent to $43.07 yesterday. The software giant is down more than 6 percent this year, compared with a 1 percent gain for the broader Nasdaq 100.

While its quarterly results have mostly beaten estimates, losses at its Nokia mobile-phone unit and slow transition from its legacy Windows business have weighed on sentiment. It's also trying to break into more crowded areas like search and cloud computing.

Yesterday's overall option volume in the name was about average, with the November 47 calls accounting for almost one-third of the total.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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