I am recommending we close our Microsoft (MSFT) spread ahead of this week’s Federal Reserve meeting, earning a 4.8% return in five days, or 351% annualized.
Current Stock Price: $233.28
Cash in Hand: $0.38
- Buy to close the MSFT Nov Week Two (11/11) 205 Put for around $0.35
- Sell to close the MSFT Nov Week Two (11/11) 200 Put for around $0.21
- Set initial debit limit at $0.14, but adjust as needed to close today
Profit: $0.24, or $24 per spread