All
Outcomes
Market
Price
AI Fair
Value
Value
Edge
↑ $533
YesNo
↓ $405
YesNo
↓ $353
YesNo
↓ $375
YesNo
↑ $435
YesNo
↓ $330
YesNo
↑ $570
YesNo
↑ $473
YesNo
↑ $503
YesNo
↓ $263
YesNo
↑ $450
YesNo
↓ $300
YesNo
↓ $390
YesNo
↑ $420
YesNo
AI Insights:
03.11 17:13 UpdatedFair Value Reasoning:
MSFT is trading around $406, in a choppy range. Market sentiment is bearish due to the 'worst start since 2008' and recent security patch issues, explaining why the probability of hitting downside targets (e.g., hitting $390 at 0.74) is priced significantly higher than upside ones (hitting $420 at 0.47). However, the upcoming earnings on April 29 introduce high volatility. Many deep OTM (e.g., $570) and ATM (e.g., $405) options are stuck at 0.50, indicating illiquidity or mispricing. Fair values are adjusted for current volatility (~7% monthly) and bearish skew; options like $435 and $330 are significantly mispriced relative to theoretical probability.
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Hedging
MSFT
Nasdaq 100
Since Microsoft typically releases its Q3 earnings in late April, this event has a direct and extreme causal link to MSFT's stock price (Impact Score 5). An earnings surprise could cause immediate and violent price volatility, directly triggering or negating specific 'Hit' options. Furthermore, given Microsoft's massive weighting in the Nasdaq 100 and S&P 500, extreme price movements (e.g., hitting $263 or $570) would create a tradable impact on the broader indices.
Divergence
Significant divergence exists. Mainstream Wall Street analysts (e.g., Morgan Stanley, Stifel) maintain 'Strong Buy' ratings for MSFT with an average price target above $590 and a low of $392. In contrast, the prediction market is pricing in extreme pessimism, assigning a 74% probability to MSFT hitting $390 or lower in April. The prediction market is betting on immediate, sharp downside that disconnects from the bullish long-term fundamentals held by analysts.