Let’s book profits on our Microsoft (MSFT) bull put spread, earning a 2.8% return in two days, or 511% annualized.
Current Stock Price: $253.22
Cash in Hand: $0.38
- Buy to close the MSFT Feb Week Two (2/10) 227.50 Put for around $0.15
- Sell to close the MSFT Feb Week Two (2/10) 217.50 Put for around $0.05
- Set initial debit limit at $0.10, but adjust as needed to close today
Profit: $0.28, or $28 per spread