MSFT is expected to stay range-bound into its late-October earnings, favoring an iron condor selling November 580-585 calls and 480-475 puts over holding through the event. Longer term, the weekly double bottom at the 200-week average and rising RSI keep momentum constructive; support at 495 and 463.

Apple and Microsoft shares, the other two we will look at, fell by about 3% during that period,

Looking at Apple, the last stock you have here is Microsoft. Not the worst performing among the "Great Seven " companies, but certainly not the best, Tim. How do you plan to trade Microsoft stock, for example?

Yes, absolutely. As you know, by following this approach with Microsoft, the earnings announcement will be at the end of October . So, I will move to the traditional November, moving away from the earnings period in this way.

The other two deals end completely before profits, to avoid event risks. Here, I think it's too short-term to get away from it long enough.

So, I think Microsoft, which, as you said, Marley, was in the middle of the group, has risen a little over the last couple of months, but not to the same extent as Apple, and certainly hasn't fallen like Nvidia.

Therefore, I make an "Iron Condor" trade by selling "Call Spread" and "Pot Spread" while providing sufficient safety margin in the ups and downs.

I like the fact that implied volatility has been relatively high across all these stocks over the past few weeks. So, I will sell the November "Call Spread" at 580-585, and at the same time the "Pot Spread" at 480-475, and I will get approximately $1.50 from this transaction.

I like this return on risk. I like that we have a large margin of safety. I like that Microsoft was trading quite casually here. I think that even after earnings, as we've seen in many AI stocks , unless they deliver spectacular results or disappoint badly, they'll likely see at least a normal event in the short term.

Therefore, I am taking advantage of what I believe will continue to be a stock with no clear direction, avoiding profits by missing out rather than staying ahead of them. Yes, we have a good and wide profit margin in this deal as well.

We will be about a month away from that earnings event.

So, KG, looking at the technical aspects here, did any of those specific levels in the deal stand out to you? Yes, it came to my attention. As you know , it's a rather bold suggestion to say that this event may pass with little impact.

This stock has actually been forming a base since about last year , and we are now at the neckline of that breakout.

Therefore, I would say that we will likely see some exciting developments when it comes to Microsoft's profits. Now, we can see that the stock has clearly made lower highs and lower lows , and we have this double bottom pattern.

The first low we saw was in early April. We came back and retested the 350 level in June, and since then we have been recording higher highs. A very strong upward movement, with a rise exceeding 57%.

But, you know, Tim is right. We are in a consolidation phase of sorts .

We had this channel line which actually lasted for about a month and a half or two months, before it broke the range and tested the 550 level. We are in a consolidation phase now, but we are still trading above the 20-day, 50- day, and 200-day moving averages.

We are once again heading towards a major event where we may witness an upward breakout if we receive good news. Now, if a drop occurs, you are really talking about a loss of the 20-day moving average and even the 50- day moving average.

You are really looking at the first major support zone at around the $495 level, with the RSI trying to consolidate and move slightly higher.

However, the MACD indicator is in a slightly more bearish position with the 12-day exponential moving average below the 26-day moving average.

But Marley, this is where you feel the real excitement when it comes to Microsoft. So, probably not in the next two weeks, but if you look at the weekly chart, we have seen this decline again.

We had a double bottom. This double bottom also coincided with the 200-week moving average , a key moving average on the long-term chart. The stock continues to make higher highs and lows on the Relative Strength Index , which means that the momentum is still good in the long term.

The MACD indicator is also in an upward position, which means that the momentum is really good in the long run. We are now approaching a test of that neckline. This is the third time we have done this since July of last year.

It seems the stock really wants to try to break through and move upwards instead of going downwards. If we do see a decline, then again, you are looking at the 495 level and even 463, which is the 20-week moving average, as a key support area here .

But this is a good base and technical structure for the double bottom pattern. You don't get many of these patterns on the weekly chart. Good. Looking at Microsoft, we find it trading lower today, going against the general market trend at the moment .

We are seeing a half percent decrease at 5:31:07.

Of course, the earnings announcement is on October 28th, which gives us about a month before this deal is finalized.