Our Microsoft (MSFT) spread is on track to expire worthless. However, given today’s market sell-off, let’s play it safe by closing the top leg now rather than risk holding through expiration for a few more pennies in premium. The bottom leg should expire worthless.
We will carry over a net debit and I will recommend a new spread after the company announces earnings on April 26.
Current Stock Price: $279.65
Net Debit: $3.19
- Buy to close the MSFT Apr Week Four (4/22) 270 Put for around $0.02
- Watch the MSFT Apr Week Four (4/22) 260 Put expire worthless
New Net Debit: $3.21