Microsoft’s stock has faced significant pressure in recent months. However, a strong long-term foundation from institutional managers and MarketSurge’s fund ownership data show support for the company. Traders can consider taking on bullish exposure using options to minimize risk. One strategy is the bullish butterfly spread, which involves creating a spread of call options with different strikes.
This strategy allows traders to benefit from Microsoft’s stock price increase while limiting potential losses. By adjusting the strike prices and expiration dates, traders can tailor the butterfly spread to their desired level of risk. With this approach, investors can potentially capitalize on Microsoft’s long-term growth prospects without exposing themselves to excessive volatility.
Source: https://www.investors.com/research/options/microsoft-stock-this-butterfly-trade-offers-bullish-exposure-and-big-payoff-potential