I am recommending we close the top leg of our Microsoft (MSFT) spread and watch the bottom leg expire worthless. We are booking an excellent profit while taking away the risk of a further tech sell-off.
Current Stock Price: $253.50
Cash in Hand: $0.53
- Buy to close the MSFT May Week One (5/7) 245 Put for around $0.03
- Watch the MSFT May Week One (5/7) 235 Put expire worthless
Profit: $0.50, or $50 per contract