On 25APR2016, I wrote more puts on MSFT to replace an expired position.

music selection:  “Angel” — Jimi Hendrix

Microsoft is one of the Big Cheap Tech names I’ve been riding for easy income for some time.  These big tech companies have a huge hoard of cash on their fortress balance sheets and gush free cash flow.  Their central position to a critical industry makes them more like digital utilities than the high flying tech names of the dot-com era.  They tend to sport fat options premiums as well.

I sold MSFT160603P00050000 for 79 cents a share.  The trade will be in force for 40 days and yields 14.42% on an annualized basis.  The trade also enjoys 4.94% downside protection.  The recent broad swoon of the market has put this one slightly in the money but I’m not worried.  Covered calls should be just as lucrative.

I have a three part position in high yield thermal coal for you Friday.

Devour your prey raptors!

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