I am recommending we sell a call against our uncovered Microsoft (MSFT) LEAP.
MSFT Sept 2022 (9/16/22) 250 Call
Note: If you were not in the previous MSFT LEAP call spread trade and want to enter one today, you must first buy the MSFT Sept 2022 (9/16/22) 250 Call before selling today’s call. However, please be aware that we will be tracking and managing this trade based on the ongoing position. And if you are new to this strategy, please watch my LEAP Call Spreads Coaching Session before entering the trade.
Current Stock Price: $286.13
Cost Basis: $51.87
Action: Sell to open the MSFT Aug Week Two (8/13) 290 Call for around $0.51
New Cost Basis: $51.36
TRADE ONE: Sell to open the SPDR S&P Biotech ETF (XBI) Aug Week Two (8/13) 125 Put for around $0.99. You can go as low as $0.81, but please don’t start there and always use limit orders. (Current stock price: $126.48)
TRADE TWO: Sell to open the Western Digital (WDC) Aug Week Two (8/13) 65 Put for around $0.49. You can go as low as $0.44, but please don’t start there and always use limit orders. (Current stock price: $66.18)