I sold my MSFT bull spread for a loss.
music selection: “Teenagers” — My Chemical Romance
The market swooned over the last three days and tech was hit hardest. My MSFT spread went from being in the money to needing an almost 10% rally in 38 days. I was past my 50% stop loss and decided to sell.
I closed the 225/230 bull call spread with 16OCT2020 expiry today for 1.202 a share. I originally purchased the spread for 2.49 a share on 31AUG2020. The trade was in force for 10 days and books a 52% loss. Over 10 spreads my loss is 1,288.
A HD bull call spread is also threatened but only needs 3.5% rally to earn full profit. It also is a nickle or so above my 50% stop loss so I’m holding a little longer but watching closely.
Devour your prey raptors!