Notable Wednesday Option Activity: BA, MSFT, COST

Microsoft (MSFT) and Costco (COST) both experienced significant options trading volume today, representing approximately 59.3% and 54.7% of their respective average daily stock volumes. Notably, long-dated call options expiring September 19, 2025, specifically the $520 strike for MSFT and the $1000 strike for COST, saw particularly high activity, indicating potential bullish positioning or strategic hedging over an extended timeframe for these equities.

Analysis

Microsoft (MSFT) and Costco (COST) are exhibiting significant options market activity, indicating focused institutional or large trader positioning. For Microsoft, total options volume reached 122,908 contracts, which translates to underlying share exposure equivalent to 59.3% of its recent average daily stock volume. The primary point of interest is the concentrated volume of 8,214 contracts in the September 19, 2025, $520 strike calls, suggesting a strong bullish conviction on a long-term horizon. Similarly, Costco's options volume represented 54.7% of its average daily share volume, with notable activity in its own long-dated calls. Specifically, the September 19, 2025, $1000 strike call saw elevated volume, pointing to expectations of substantial price appreciation over the next year. The focus on these specific, far-dated, and out-of-the-money call options for two distinct market leaders signals that some market participants are positioning for significant and sustained upside beyond near-term market fluctuations.

Key Decisions for Investors

• Investors should monitor the open interest for the MSFT September 2025 $520 calls and the COST September 2025 $1000 calls to determine if this high volume translates into new bullish positions.