I wrote puts on Microsoft Corporation (MSFT) on the first of the month.
music selection: “I’m In Love Again” — Fats Domino
weigh-in: 214.8 +2.2: Double-doh! This makes two weeks in a row of going the wrong direction. It’s my worst slippage since starting last March. This blog has helped a lot. Knowing I have to reveal my progress each Monday has kept me motivated, as I don’t want to let my readers down. But lately it hasn’t been enough. Time to redouble my efforts and start killing it at the gym. I hope to be in a better position for next Monday’s weigh-in. Wish me luck.
My prior puts on Microsoft expired worthless, as planned. I wrote fresh ones, out of the money, targeting 12% annualized with as much downside protection as possible. The latest slide in the market has put those puts 6% in the money anyway. But my downside is owning a great company at a great price.
I sold MSFT160311P00052000 for 90 cents a contract. The trade will be in force 40 days and pays 15.79% annualized. I now expect to get assigned and to write covered calls against the position at the 52 strike. There is time for this one to turn around though so we will see.
Devour your prey raptors!