The premium on our Microsoft (MSFT) spread has dropped to just around a nickel. Let’s book profits now, earning a 5.8% return on our capital in seven days, or 302% annualized.
Current Stock Price: $260.18
Cash in Hand: $0.35
- Buy to close the MSFT Jul Week Four (7/22) 237.50 Put for around $0.12
- Sell to close the MSFT Jul Week Four (7/22) 232.50 Put for around $0.06
- Set initial debit limit at $0.06, but adjust as needed to close today
Profit: $0.29, or $29 per spread