Microsoft (NASDAQ: MSFT) closed at $29.78 Tuesday.
MSFT announced on May 5 the withdrawal of its proposal to acquire Yahoo (NASDAQ: YHOO) for consideration of approximately $41 billion.
MSFT had $11.8 billion in cash, $14.5 billion in short-term investments and zero long-term debt as of March 31, 2008.
MSFT paid a special $3 dividend in December of 2004.
MSFT overall option implied volatility of 28 is below its 26-week average of 30 according to Track Data, suggesting slightly less price risk.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com










