MSFT Coiling on the Weekly: Options trade alert

I bought MSFT September $420 calls today.

The stock has been coiling tightly on the Weekly for about 5 weeks above the 8EMA, and it’s down nearly 20% from the October weekly closing high.

September calls give me breathing room for volatility and overall the stock is consolidating in a way that has historically led to breakouts.

In general, coiling can lead to breakdowns as easily as they can lead to breakouts but with strong institutional sponsorship, a large pullback from the highs, and macro/AI spending producing a strong tail wind, I’m positioning long.

https://nnntrader.substack.com/p/trade-note-msft

https://preview.redd.it/vw0ze9bpbj2h1.jpg?width=800&format=pjpg&auto=webp&s=576ba1edfda2d800cfd95d15cf360d48742ea8f5

Posted May 21, 2026, 6:36 PM UTC

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