New Options

ACTION:

'Buy to open' the MSFT February 87.5 Call (MSFT180216C00087500) for a maximum price of $1.85.

Dear Ian,

Today, we're opening a new bullish trade on Microsoft (MSFT). As investors prepare for the new year, we see some surprising momentum building in MSFT as the stock rallies off support. Volume is low today and a new entry in front of the weekend should be taken carefully. 

Investors are likely to be looking for growth in the first quarter, and MSFT is positioned well from a technical and fundamental perspective. If the tax bill serves its purpose and companies increase capital investment, MSFT should benefit significantly. Because of the holiday and lower-than-average volume, we recommend putting in an entry order just at current market prices. If the stock pops a little before the close, and we aren't filled, we will reevaluate on Tuesday.

Microsoft (MSFT) common stock was trading for approximately $85.91 per share at the time of this alert.

ACTION:

'Buy to open' the MSFT February 87.5 Call (MSFT180216C00087500) for a maximum price of $1.85.