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!

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