New Options Trading Opportunities Emerge for Microsoft Investors
Investors in Microsoft Corporation (Symbol: MSFT) are now seeing new options start trading, specifically for March 2026 expiration contracts. With 420 days remaining until they expire, these contracts could allow sellers of puts or calls to earn a higher premium compared to those expiring sooner.
According to Stock Options Channel, there is one put and one call contract that stand out from the new March 2026 options. The put contract has a strike price of $440.00 and currently carries a bid of $33.30. If an investor chooses to sell this put contract, they would agree to buy MSFT shares at $440.00 while collecting the premium. This would effectively reduce their cost basis for the shares to $406.70, assuming they are looking to purchase MSFT at today’s market price of $444.03 per share.
Since the $440.00 strike price is approximately 1% below the current trading price, there is a possibility that this put contract could expire worthless. Current data estimates a 63% chance that could happen. Stock Options Channel will monitor these odds and provide updates on their webpage. If the contract expires worthless, the premium collected would represent a return of 7.57% on the cash commitment, or an annualized 6.58% — a metric Stock Options Channel refers to as YieldBoost.
Highlighted Historical Price Movement for MSFT
Below is a chart showing Microsoft Corporation’s trading history over the past twelve months, with the $440.00 strike price marked for reference:
Call Options Present a Potential for Higher Returns
Turning to the calls side of the options market, investors can look at the call contract with a $480.00 strike price, which currently has a bid of $36.50. If someone buys MSFT at the current price of $444.03 and sells this call as a “covered call,” they would be agreeing to sell the shares at $480.00. Adding the premium received, this could lead to a total return of 16.32%—excluding any dividends—if the stock is called away by the March 2026 expiration date.
However, taking a cautious approach would be wise, as the stock could gain even more value beyond $480.00. This makes analyzing the past year of trading history and understanding the business fundamentals crucial. Below is another chart depicting MSFT’s trading activity over the last twelve months, with the $480.00 strike price highlighted:
The $480.00 strike price represents an approximate 8% premium from Microsoft’s current trading price. Thus, it’s possible this call contract could also expire worthless, allowing the investor to retain both their shares and the premium earned. Present analytics suggest there’s a 50% likelihood of this occurring. This is also tracked by Stock Options Channel on their website, showing the changing odds. If the covered call expires worthless, the premium would equate to an 8.22% additional return, or 7.14% annualized—also classified as a YieldBoost.
Taking a closer look at the volatility, the put contract carries an implied volatility of 25%, while the call has a slightly lower figure of 24%. Meanwhile, actual trailing twelve-month volatility for MSFT, based on the last 250 trading day closes and today’s price of $444.03, is calculated at 20%. Investors seeking additional put and call options ideas can find more options at StockOptionsChannel.com.
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Also see:
DOOO Dividend History
PAG Dividend History
Institutional Holders of BDGE
The views and opinions expressed herein are those of the author and do not necessarily represent the views of Nasdaq, Inc.
