Options Traders Place Heavy Bets on Alphabet and Microsoft Amid Near-Record Nasdaq Levels

Traders are concentrating large options positions on two members of the “Magnificent Seven” – Alphabet and Microsoft – that have not reached new price highs since at least May. The surge in activity is evident from a more than 50 % jump in options volume for both stocks compared with their 30-day averages, as reported by a CNBC analysis of Cboe LiveVol, SpotGamma and Barchart data.

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The Nasdaq index is trading less than 1 % below its recent all-time highs, and the morning session was buoyed by better-than-expected economic data, including a softer inflation print. Bond prices also rolled over later in the day, yet both Alphabet and Microsoft posted gains – 2.7 % and 1.8 % respectively – reinforcing the bullish tilt among equity investors.

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For Alphabet, call buying overwhelmingly dominates put buying. Roughly 150,000 call contracts were initiated, while fewer than 100,000 calls were sold and about 50,000 puts were purchased. This results in a call-to-put ratio of nearly 3 : 1, an unusually bullish stance for a high-profile stock. Among the top 20 dollar-value trades in Alphabet, 14 were bullish, four neutral and two bearish. By midday, more than $260 million in options premium had changed hands, with over $200 million tied to call contracts. Microsoft exhibited a similar pattern of elevated volume, though the specific call-put breakdown was not detailed.

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The pronounced skew toward call buying suggests that market participants anticipate further upside for both companies, despite their recent price stagnation. If the bullish sentiment materializes, the heightened options activity could translate into sizable gains for investors positioned on the upside. Conversely, the concentration of large bets also raises the stakes for any adverse price movement, potentially amplifying volatility in the near term.

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