I’m opening a bullish position in MSFT.
music selection: “Red Stars” — The Birthday Massacre
weigh-in: 221.4 (0.8)
First the closed positions. A bull call spread in CMCSA expired in the money over the weekend. I earned 432 in profits on 1,368 capital at risk. That was good for 32% over 40 days or 288% annualized return. A short put in ITB also expired worthless over the weekend. It earned 3% over 26 days or about 42% annualized.
I am giving up on my DHI bull call spread. After 8 days it went from being at the money to 6.28% under water. I didn’t like the chart any longer so decided to cut my losses. I had 1,883 capital at risk and took a loss of 693 or about 37%.
Finally, the bull call spread in MSFT. I don’t think the company or its stock performance needs much introduction. I like them as a growth business driven by moves into SaaS and cloud infrastructure. I bought the 225/230 BCS with 16OCT2020 expiry for 2.49 a share. I need shares to rise 1.43% over 47 days to earn the maximum profit. That would be 2,510 on 2,490 capital at risk, good for 101% or 783% annualized. I like my chances here with a great deal of leverage on a hot chart and hot stock.
Devour your prey raptors!