I bought MSFT September $420 calls today.
The stock has been coiling tightly on the Weekly for about 5 weeks above the 8EMA, and it’s down nearly 20% from the October weekly closing high.
September calls give me breathing room for volatility and overall the stock is consolidating in a way that has historically led to breakouts.
In general, coiling can lead to breakdowns as easily as they can lead to breakouts but with strong institutional sponsorship, a large pullback from the highs, and macro/AI spending producing a strong tail wind, I’m positioning long.
https://preview.redd.it/9fcu2ttvhj2h1.png?width=1409&format=png&auto=webp&s=cb5367512e11b5515c2a2970f8708ff0f6261acc