Put Options on MSFT on 12/16/2014

Microsoft Corporation (MSFT) develops, licenses, markets, and supports software, services, and devices worldwide.

The company’s Devices and Consumer (D&C) Licensing segment licenses Windows operating system and related software; Microsoft Office for consumers; and Windows Phone operating system. Its Computing and Gaming Hardware segment provides Xbox gaming and entertainment consoles and accessories, second-party and third-party video games, and Xbox Live subscriptions; surface devices and accessories; and Microsoft PC accessories.

The company’s Phone Hardware segment offers Lumia Smartphones and other non-Lumia phones. Its D&C Other segment provides Windows Store, Xbox Live transactions, and Windows Phone Store; search advertising; display advertising; Office 365 Home and Office 365 Personal; first-party video games; and other consumer products and services, as well as operates retail stores. The company’s Commercial Licensing segments licenses server products, including Windows Server, Microsoft SQL Server, Visual Studio, System Center, and related Client Access Licenses (CALs); Windows Embedded; Windows operating system; Microsoft Office for business, including Office, Exchange, SharePoint, Lync, and related CALs.

Shares have fallen below their 50-day moving average. In the past, this level has been a strong support. Now we expect the stock to find  support around the $42 level.

52-Week Trading Range: $34.63 to $50.05

Last Trade: $46.67

Trade Buy 1 January $47.00 Put at $1.45 For a net debit of $1.45 Profit/Loss Analysis Breakeven at $45.55 Maximum profit is unbounded Maximum loss is ($145.00) at strike of $47.00 Closing Summary Sold 1 January $47.00 Put at $1.15

Position closed on 1/15/2015 at price of $1.15 with a -20.69% loss in 30 days.

Updates

1/15/2015 10:08:13 AM

We are closing MSFT $47 Put Option at $1.15

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