Traders bet that Dow outperformer Microsoft will pop before year end

On Thursday investors bought more than 13,000 Microsoft calls at the December 103 strike price, according to Investitute co-founder Pete Najarian. These particular calls expire on December 28th, so it’s a very short term bet that the stock moves higher before the end of the year.

The Washington-based company is the Dow’s second-best performer this year, and it’s one of only 5 components on pace to end the year with a double-digit gain.

Microsoft trades at 22.9X next year’s earnings, and yields 1.81%.

Disclosure: Pete Najarian owns Microsoft.

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