Our Microsoft (MSFT) bull put spread is trading well out of the money, but this is not the kind of market where you want to take anything for granted.
Therefore, I am recommending we buy back the top leg of the spread for a few cents and leave the bottom leg in place to (very likely) expire worthless.
I will recommend a new spread on the stock soon to continue to work off our net debit on the position.
Current Stock Price: $264.96
Net Debit: $1.32
- Buy to close the MSFT May Week Four (5/27) 230 Put for around $0.02
- Watch the MSFT May Week Four (5/27) 220 Put expire worthless
New Net Debit: $1.34