Options Traders Build Bullish Positions in Alphabet and Microsoft
Volume spiked more than 50% above average as derivatives flows targeted upside in two mega-cap tech stocks lagging recent market records.
Options traders placed substantial bullish wagers on Alphabet and Microsoft on Wednesday, according to a report by CNBC Business (https://www.cnbc.com/2026/09/30/two-trades-that-just-happened-in-magnificent-seven-stocks-point-to-big-gains-ahead.html). The derivatives activity followed economic data showing cooler inflation, as the Nasdaq traded within 1% of the record highs it set last week.
Both tech companies, which have not reached new highs since at least May, recorded options volumes more than 50% above their 30-day averages. Alphabet shares gained 2.7% and Microsoft rose 1.8% during the session, even as Treasury bond prices softened in the afternoon.
In Alphabet, call contract volume exceeded put volume by more than two to one, according to flow data from Cboe LiveVol, SpotGamma, and Barchart. Buyers initiated just under 150,000 call contracts, compared with fewer than 100,000 calls sold and 50,000 puts bought. Among Alphabet's 20 largest transactions by dollar volume, 14 were bullish, four were neutral, and two were bearish. More than $260 million in total options premium had traded by midday, with over $200 million concentrated in calls.
Alphabet trading included large blocks of in-the-money 250-strike calls expiring in June, along with 370-strike calls expiring Nov. 20 trading at $11.40—requiring a roughly 9% stock rally to break even—and near-the-money 350-strike calls expiring Friday.
Microsoft saw nearly $500 million in options premium change hands, with $400 million tied to calls and roughly $220 million representing purchased call contracts. Traders bought more than 130,000 calls against fewer than 52,000 puts. Although an equivalent number of calls were sold, net delta exposure reflected net positive upside positioning.
One notable Microsoft transaction involved a call spread expiring Dec. 18. An investor spent $12 million to purchase 3,000 in-the-money 500-strike calls and offset costs by selling approximately $2 million of 600-strike calls expiring on the same date. The spread carries a breakeven price near $530, roughly 2.3% above the stock's prevailing level, which would represent a new all-time closing high for Microsoft.
Sources
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