Microsoft shares hit their highest close of the year after announcing a major Copilot overhaul that seeks to compete with Anthropic’s Claude by unifying chat, coding, and autonomous agent tools. The stock’s implied volatility now sits in the upper 60th percentile of its annual range, meaningfully elevated compared to the majority of the Magnificent Seven, creating an opportunity for options premium sellers. The recommended strategy is a short iron condor on the October 16th expiration, with a 485/475 put spread and 535/545 call spread, generating approximately $2.99 in credit and a maximum profit of $299 if the stock remains within that range. Maximum risk is estimated at $701 if the stock moves beyond $545 or below $475, roughly 7% from current levels, with a theoretical probability of profit of 63%.
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