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.
Posted May 21, 2026, 6:36 PM UTC
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