MSFT Long Put Spread

This Trade Is

Like they say, the first trillion is always the hardest. MSFT’s market cap is just over $1 trillion with its price at $131, and its high beat that by $.37 yesterday after Wednesday night’s earnings. The numbers were better than expected, driven by success in its Azure cloud and computing services. So, the market tossed MSFT a bone and gave it a $1 trillion market cap for about 3 minutes yesterday morning, but then cruelly took it away to push it back into the mortal realm. That’s where AAPL is a mere $23 billion away from retaking the most valuable corporation away from MSFT, and AMZN isn’t far behind. With AAPL’s experience of gaining, then losing, the crown, it might be MSFT’s fate to repeat it. If you’re a contrarian trader, you might consider a bearish trade on MSFT. The long put vertical that’s short the 128 put and long the 131 put in the June weekly expiration with 42 DTE is a bearish strategy with a 64% prob of making 50% of its max profit before expiry and that generates $.04 of positive daily theta.

Total P/L

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