Stock / Symbol: Microsoft / MSFT
Option Strategy: double calendar
Price at trade entry: $24.64
Price at this post: $25.28
Reasoning: This trade on MSFT was a quick weekly trade intended to yield around 5%. With both of the short call strikes in the money, we're going to close out the 24 strike calendar and roll the short 25 calls over to[private_monthly] September expiration. If you're not currently in this trade, you can participate in the 25 strike calendar here by purchasing the Apr12 25 calls and selling the Sep11 25 calls.[/private_monthly]
Trade Details:
[private_monthly]
STC 2 MSFT Apr12 24 Calls
BTC -2 MSFT AugWk4 24 Calls
for a net credit of $1.72 per contract
then,
BTC -2 MSFT AugWk4 25 Calls
STO -2 MSFT Sep11 25 Calls
for a net credit of $0.58 per contract
[/private_monthly]
Max Risk: $320 (adjusted down from $774)
Max Profit at: $25
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