Let’s book profits on our Microsoft (MSFT) bull put spread rather than risk holding through this week’s Federal Reserve meeting. Plus, by closing now, we can earn a 1.3% return in five days on our $1,000 in capital allocated, or 95% annualized.
Current Stock Price: $250.78
Cash in Hand: $0.20
- Buy to close the MSFT Dec Monthly (12/16) 220 Put for around $0.10
- Sell to close the MSFT Dec Monthly (12/16) 210 Put for around $0.03
- Set initial debit limit at $0.07, but adjust as needed to close today
Profit: $0.13, or $13 per contract