Despite Microsoft’s $3.38 trillion market cap and essential digital products, its stock is down over 8% this year. In 2025, Microsoft stock only gained 14.75%, disappointing shareholders compared to S&P 500 and Nasdaq returns of 18% and 21%. Over the past decade, Microsoft shares averaged a 26% yearly return. Currently, shares are up just over 2% since summer 2024, while S&P 500 and Nasdaq rallied 25% to 29%. Microsoft stock is 18% below its all-time high. The upcoming earnings announcement on Jan. 28 could impact MSFT stock’s direction.

To invest in Microsoft stock with limited risk, consider bull call spreads as an alternative to owning shares outright. With sizable earnings reactions, a 100-share position could see significant losses. Bull call spreads offer a way to profit with a smaller percentage of Microsoft stock’s average earnings move. An attractive option is the Feb 6 $442.50 / $482.50 combination, with a modest risk of 2.88% and a potential payoff of 213%. This strategy can benefit investors of all sizes and offer a profit opportunity post-earnings.

Read more at Barchart: Trade Microsoft Stock Before Earnings With This Bull Call Spread