Microsoft’s (MSFT) stock dropped by 12% on Thursday, now down 22% from its July 2025 all-time high of $555.45. Despite a good quarter, investors were spooked by softer future guidance, leading to a big selloff. Microsoft, Meta Platforms (META), Alphabet (GOOGL), and Amazon (AMZN) plan to spend $550 billion on AI in 2026. With concerns about the company’s future, options activity showed high Vol/OI ratios for call options. Consider a bull call spread strategy with different strike prices for potential profit. Additionally, a long ratio call spread strategy can be used for a leveraged bet on a sharp stock price move higher. Two $575 calls can be bought for a net debit of $310, with a maximum loss of $5,310 and unlimited profit potential. The breakeven price is $678.10. Alternatively, selling a $575 call and buying two $625 calls can be done for a net debit of $170. The maximum loss is $5,170, with a breakeven price of $676.70. The last strategy offers more wiggle room for stock jumps, with losses kicking in at $575. Will Ashworth did not have any positions in the mentioned securities.

Read more at 1. Tesla CEO Elon Musk announces plans to split the company’s stock in a 5-for-1 move to make shares more accessible to investors. Barchart.

2. Apple becomes the first U.S. company to reach a $2 trillion market capitalization, further solidifying its position as the most valuable publicly traded company in the world. Barchart.

3. The U.S. economy adds 1.8 million jobs in July, marking a slowdown in the rate of job growth as the country continues to grapple with the ongoing impact of the COVID-19 pandemic. Barchart.: Capitalize on Microsoft’s Unusual Options Activity with These Two Bullish Call Strategies