Mrzorro
04-28

Microsoft Options Premiums Soar After OpenAI Split News


$Microsoft(MSFT)$  's options market is bracing for wild share price swings after the software giant announced Monday the end of its exclusive pact with OpenAI and said it will no longer pay a revenue share to the parent of ChatGPT. 

"Microsoft's license will now be non-exclusive," the tech giant said in a corporate blog post Monday morning, announcing the amendment to its pact with the company behind ChatGPT. "OpenAI can now serve all its products to customers across any cloud provider." 

Options traders pushed Microsoft's expected price swings to the 100th percentile Monday, meaning it's higher now than any other day in the past year. That translates to higher option premiums. 

The amendment also set a limit on the revenue share payments from OpenAI to Microsoft. "Microsoft will no longer pay a revenue share to OpenAI," the tech behemoth said in a blog post on its website. 

More money left Microsoft stock than came in today, with regular investors and bigger players both selling. Only the very largest trades showed net buying. The stock is now below the average price most holders paid, and a little over half of all positions are still showing a profit.


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Microsoft Beats but Capex Slows; Will It Stay Mag 7's Laggard?
Microsoft (MSFT) extended losses by 3.93% today despite Q3 Azure cloud revenue growth of 40% and AI revenue doubling year-over-year. Bank of America revised its price target post-earnings, while CEO Satya Nadella noted AI commercial value still needs validation in verticals such as healthcare, with GPU and storage constraints expected to persist through year-end. The numbers were far from weak — but markets voted with their feet. Can MSFT shed its last-place standing within the Magnificent 7?
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