The Dip in Microsoft (MSFT) Offers a Buying Opportunity
Microsoft has dipped lower over the past few weeks, but several analysts think the broader outlook calls for more upside. Check out the following two articles which discuss the recent earnings report and how the pros outweigh the cons for MSFT investors - Microsoft revenue grew 13% despite coronavirus and Should You Buy Microsoft (MSFT) Stock?
____________ advertisment ______________
Fast Profits From Top Stocks In Just Minutes Per Week
How would you like to learn how to turn $327 into $1,237 following a simple, repeatable trading pattern? Just download our Free "The Top 10 Options Income Superstars" and one simplified options trading system. Download the free report and trading system to get started and unlock the secrets to creating a consistent income with one simplified options trading system.
Your Free Download - Click Here
______________________________________
Technicals
From a technical perspective, there are a few things that make MSFT attractive at current prices. First, there is a trendline in place that extends back to lows posted in April and the stock is seen bouncing from it. Further, this same trendline is intersecting with the $200 level which is seen as a support level. In addition to support confluence, there is a candlestick pattern on a weekly chart that suggests a bullish reversal may be taking place.
*source Tradingview.com
If you agree there's further upside ahead for MSFT, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.
Buy To Open MSFT 4SEPT20 202.5 Puts (MSFT20084P202.5)
Sell To Open MSFT 4SEPT20 205 Puts (MSFT20084P205) for a credit of $1.08 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when MSFT was trading near $205. Unless the stock rallies quickly from here, you should be able to get close to this amount.
Your commission on this trade will only be $1.30 per spread. Each contract would then yield $106.70 and your broker would charge a $250 maintenance fee, making your investment $143.30 ($250 – $106.70). If MSFT closes at any price above $205 on September 4, both options would expire worthless, and your return on the spread would be 74% (844% annualized).
____________ advertisment ______________
Ready to make a 9-to-5 income trading just a few hours per day?
Get an exclusive peek at the secret tools and tricks used by one veteran 20-year trader for the chance to do just that...
Former Chicago Exchange Trader Reveals: 5 Secret Trading Strategies
Click to download the FREE guide...
______________________________________
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.
As with all investments, you should only make option trades with money that you can truly afford to lose.
Happy trading,
Terry
____________ advertisment ______________
Free 30-Day Access To Expert Trading System
Our friends at GorillaTrades are offering all readers the opportunity to get Free 30-day access to their Stock Picks, Options Picks, and Newsletters. There is NO credit card required to sign up, all you need is your name and email address to try the Gorilla's risk-averse trading system for the next 30 days. Get the edge you've been looking for, and try it today for free!
Click Here For Instant Access To Explosive Stock & Options Picks
______________________________________
Any questions? Email Colin@terrystips.com
You can see every trade made in the actual option portfolios conducted at Terry’s Tips and learn all about the wonderful world of options by subscribing here. Why wait any longer to make this important investment in yourself?
Even better, you can become a Terry’s Tips Insider, and receive all our educational reports and materials absolutely free by opening a new account at the best options broker around - thinkorswim. If you open an account with our link, they will give you 60 days of free trading or up to $600, the same deals they give to everyone who opens an account with them. You must use this link to sign up - open thinkorswim account – and once you have funded your account with at least $3500, email Colin@TerrysTips.com and let him know that you have done it, and this is what he will do – sign you up for our Premium Service package ($97 monthly subscription). You get 3 months ($291 worth) of services without paying us one penny.
I look forward to having you on board, and to prospering with you.
Terry
|
