Call Spread on MSFT on 8/3/2020

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

Its Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, as well as related Client Access Licenses (CAL); Skype, Outlook.com, and OneDrive; LinkedIn that includes Talent and marketing solutions, and subscriptions; and Dynamics 365, a set of cloud-based and on-premises business solutions for small and medium businesses, large organizations, and divisions of enterprises.

Its Intelligent Cloud segment licenses SQL and Windows Servers, Visual Studio, System Center, and related CALs; GitHub that provides a collaboration platform and code hosting service for developers; and Azure, a cloud platform. 

It also provides support services and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions; and training and certification to developers and IT professionals on various Microsoft products.

Its More Personal Computing segment offers Windows OEM licensing and other non-volume licensing of the Windows operating system; Windows Commercial, such as volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows Internet of Things; and MSN advertising.

It also provides Microsoft Surface, PC accessories, and other devices; Gaming, including Xbox hardware, and Xbox software and services; video games and third-party video game royalties; and Search, including Bing and Microsoft advertising.

It sells its products through distributors and resellers; and directly through digital marketplaces, online stores, and retail stores. It has strategic partnerships with Humana Inc., Nokia, Telkomsel, Swiss Re, Kubota Corporation, FedEx Corp., and Hitachi. 

Microsoft has expressed its interest in purchasing Tik Tok, as talks of US banning the app continue. This should push shares higher.

We will be trading a Call Spread on August 14th

Last Trade: $205.01

Trading Range: $130.78 to $216.38

Trade Buy 1 August $205.00 Call at $4.55 Sell 1 August $215.00 Call at $1.33 For a net debit of $3.22 Profit/Loss Analysis Breakeven at $208.22 Maximum profit is $678.00 at strike of $215.00 Maximum loss is ($322.00) at strike of $205.00 Closing Summary Sold 1 August $205.00 Call at $5.00 Bought 1 August $215.00 Call at $0.45

Position closed on 8/12/2020 at price of $4.55 with a 41.30% gain in 9 days.

Updates

8/12/2020 12:48:01 PM

Closing MSFT call spread

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