Stock / Symbol: [private_monthly]Microsoft / MSFT[/private_monthly]
Option Strategy: bull put spread
Trade entry date: Nov 22
Price at trade entry: $24.75
Price at trade exit: $26.00
Analysis: Thinking that MSFT was quite oversold, we entered a bull put spread back on Nov 22. All we needed to capture the full 22% yield on the trade was for MSFT to remain above $24 by today's market close. With the stock closing at $26 today, we were able to allow the postion to expire worthless for the full yield.
Trade Details:[private_monthly]
Short -7 MSFT Dec11 24 puts
Long 7 MSFT Dec11 23 puts
for a net credit of $0.19 per contract
[private_monthly]
Max Risk: $567
Max Reward: $133 or 22% by Dec 16
Profit Range: $23.82 +
Max Profit at: $24 +
Realized Profit / Loss: $133 or 22% (pre-commission)
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