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Benzinga
Benzinga
Business
Josh Enomoto

Options Corner: AI Bubble Fears Deliver An Incentivized Wager On Tech Giant Microsoft

Microsoft Corp. (NASDAQ: MSFT)

While the technology sector is gradually showing some signs of recuperation — particularly with the cryptocurrency ecosystem finding recent momentum — skepticism remains a major source of anxiety. One name that has apparently aroused suspicion is Microsoft Corp (NASDAQ:MSFT). Ordinarily, dips in MSFT stock would be viewed as a buying opportunity. However, with fears that the bubble in artificial intelligence may pop soon, market makers seem to have braced for the pessimism.

How can I be so sure? Obviously, I'm at a complete loss as to what the market really thinks. To claim otherwise would be the height of unhinged arrogance. But what I can say is that for the 495/500 bull call spread expiring Jan. 16, 2026, the maximum payout for hitting the second-leg strike ($500) at expiration would currently come out to more than 108%.

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