Short-term cap seen in Microsoft

Microsoft reached its highest level in 14 years today, but one large trader apparently believes that further gains will be limited in the near term.

Already 224,000 MSFT options have traded, 6 times its daily average for the last month. The biggest print comes in the Weekly 40 calls that expire at the end of next week.

A block of 17,706 of those contracts traded for the bid price of $0.32, indicating that they were sold. This is clearly a new position, open interest in the strike was just 495 before the trade appeared.

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