Microsoft (MSFT) stock is currently in a downtrend, putting in a series of lower highs and lower lows. The stock is also below its 50-day and 200-day moving averages and closed near its intraday low on Monday.
This kind of bearish price action could indicate further weakness ahead for the stock, in which case a bear call spread could work well.
This bear call spread that ***** umes Microsoft will fail to get back above 400 in the next few weeks. A bear call spread involves selling an out-of-the-money call and buying a further out-of-the-money call.
A bear call spread can be profitable if the stock trades lower, sideways, and even if it trades slightly higher, as long as it stays below the short call at the contract's expiration.
A bear call spread with a July 17 expiration on Microsoft stock using the 400-405 strike prices recently sold for around 55 cents a share per set of contracts. Amid a gain in Microsoft stock on Tuesday morning, that spread grew to around 85 cents.
This kind of bearish price action could indicate further weakness ahead for the stock, in which case a bear call spread could work well.
This bear call spread that ***** umes Microsoft will fail to get back above 400 in the next few weeks. A bear call spread involves selling an out-of-the-money call and buying a further out-of-the-money call.
A bear call spread can be profitable if the stock trades lower, sideways, and even if it trades slightly higher, as long as it stays below the short call at the contract's expiration.
A bear call spread with a July 17 expiration on Microsoft stock using the 400-405 strike prices recently sold for around 55 cents a share per set of contracts. Amid a gain in Microsoft stock on Tuesday morning, that spread grew to around 85 cents.
1 month ago
