Option traders moderately bearish in Microsoft with shares down 2.3%

Option traders moderately bearish in Microsoft (MSFT), with shares down $10.85 near $459.82. Options volume running well above average with 325k contracts traded and calls leading puts for a put/call ratio of 0.65, compared to a typical level near 0.82. Implied volatility (IV30) is higher by 1.5 points near 32.71, in the highest 10% of observations over the past year, suggesting an expected daily move of $9.47. Put-call skew steepened, indicating increased demand for downside protection.Looking ahead: Microsoft (MSFT) will report earnings after the close on 2026-01-28.Option markets are pricing in a 50% probability of a move greater than 4.58% or $21.06.