My old put in MSFT expired out of the money over the weekend.
music selection: “Changes” — Yes
Microsoft is another of the Big Cheap Tech names I like to write puts on. It gushes free cash flow and has a hoard of cash on the balance sheet. The valuation in terms of cash adjust Price to Free Cash Flow is attractive. I’ve made a lot of easy money this way.
On Monday, I sold MSFT160722P00050500 for 1.18 a share. The trade will be in force for 47 days. It yields 18.15% annualized. The trade also enjoys 4.77% downside protection.
In other news, I have three positions expiring today. A covered call in AT&T will expire out of the money. A strangle in Cheneire Energy will likewise expire worthless. A written put in Disney will result in assignment. The market is off to a bumpy start this morning but there is time for things to turn around.
Devour your prey raptors!