Microsoft (MSFT) is up nearly 6% today after the company reported better-than-expected fiscal third-quarter revenue and earnings on strong cloud computing business. Revenue guidance for the current quarter was in line with analyst estimates.
I am recommending a new bull put spread to reduce our net debit on the position.
You can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position. If you are new to spread trading, please watch my Bull Put Spread Coaching Session before entering the trade.
Current Stock Price: $285.92
Net Debit: $3.21
- Sell to open the MSFT May Week One (5/6) 265 Put for around $1.79
- Buy to open the MSFT May Week One (5/6) 255 Put for around $0.91
- Set initial credit limit at $0.88, but adjust as needed to enter the spread today
New Net Debit: $2.33