Put Options on MSFT on 7/23/2013

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

Its Windows division develops and markets PC operating systems, related software, and online services, and PC hardware products.

These offerings consist of the Windows operating system, software, and services; Surface; and Microsoft PC hardware products. The company’s Server and Tools division provides Windows Server, Windows Azure, Microsoft SQL Server, SQL Azure, Windows Intune, Windows Embedded, Visual Studio, Silverlight, and System Center.

It also offers cloud-based services; and training and certification to developers and information technology professionals, as well as builds standalone and software development lifecycle tools for software architects, developers, testers, and project managers. Its Online Services division provides online information and content, including Bing, MSN, adCenter, and Atlas online tools for advertisers. 

Shares have formed a bearish "flag" after the company reported earnings that missed the market estimates. Lower share prices are expected for this stock.

52-Week Trading Range:  $26.26 - $36.43

Entry Point: $32.00

Here is the trade:

Buy One September $32 Put for less than $1.15

The pay off chart is shown below.

Trade Buy 1 September $32.00 Put at $1.15 For a net debit of $1.15 Profit/Loss Analysis Breakeven at $30.85 Maximum profit is unbounded Maximum loss is ($115.00) at strike of $32.00 Closing Summary Sold 1 September $32.00 Put at $0.90

Position closed on 9/3/2013 at price of $0.90 with a -21.74% loss in 41 days.

Updates

9/3/2013 9:34:48 AM

We are closing MSFT Put option at 0.90

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