Last Monday, I wrote a put on Microsoft Corporation (MSFT)
music selection: “Whiskey in the Jar” — Metallica
The defensive theme continues with this pick. Annualized yield of 31.7% was on offer by Mr. Market but I took much less to gain downside protection. I was able to sell MSFT160129P00051500 for 83 cents. The trade will be in force for 41 days and yields 14.35% annualized. Against the spot price at the time it was written, this trade has 7.5% downside protection. That is a lot of wiggle room for slow moving Big Softy over 41 days. And 14+% is a fine return that well outpaces the long term average of the broad indexes.
Next up on Tuesday, the first ever Raptor Transparency Post. I’ll be revealing my liquid networth and current withdrawal rate.
Devour your prey raptors!