Microsoft $MSFT announced earnings last night, and while the stock gapped higher at the open, it has spent most of the morning giving back much of those gains.

It looks to me that the prior trading range for $MSFT is acting as a powerful magnet. And the broader market weakness sure is helping things along in that regard.

At the end of the day, the market is telling us that the latest earnings report hasn’t really changed any minds of Microsoft bulls or bears, and therefore, we’re likely to remain stuck in this range until some new information reveals itself:

We options traders can benefit from this scenario. [Read more…]