MSFT Long Put Spread

In the World’s Biggest Cap Contest, the current leader is MSFT at $901 billion. MSFT is just off its all-time high price from a couple days ago, and it was down yesterday after eight straight up days. AAPL? It’s at $887 billion. That’s only $14 billion away from MSFT, but it might as well be a bajillion when you’re talking about corporate bragging rights. But MSFT hasn’t yet hit the magical trillion dollar mark, which the faded AAPL has. It would need to get up to about $131 to do that, and it has about a 50% chance of hitting that price by the end of the year. That’s a lot of time for anything to happen, though, and MSFT might correct off this high before then. If you are a contrarian, you might consider a bearish trade in MSFT. The long put vertical that’s short the 115 put and long the 120 put in the May expiration with 57 DTE is a bearish strategy that has a 61% prob of making 50% of its max profit before expiry and that generates $.19 of positive daily theta.

This Trade Is

Total P/L
6.2%

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