Covered Calls Strategies for Repairing Microsoft Stock Trade – Part 2

Part 1 of this series on repair strategies on Microsoft Stock looked at how Brad, our intrepid investor could establish a core stronghold of 1500 shares of Microsoft Stock and through using an end of day strategy, he could retain those shares indefinitely and generate excellent returns on those 1500 shares while collecting the dividend. At the same time, Brad is still holding 2200 more shares with a cost basis of $29.56 which he would dearly like to get his capital back without any losses.

Microsoft Stock Repair Strategy Part 2

In this the second part of this Microsoft Stock repair strategy series, I look at using ordinary covered calls to work the cost-basis lower to get exercised out of the stock and get his capital back without loss. I then look at a couple of adjustments that can speed up the recovery process including the use of in the money covered calls and covered calls rolling techniques to get his cost-basis in Microsoft Stock even lower and to get his stocks exercised out quicker than would normally be possible to have his capital from his Microsoft Stock trade returned earlier.

Microsoft Stock Decline

The recent decline in Microsoft Stock from an intraday high of $31.61 has caught a lot of investors holding shares with paper losses. Those losses even though are just on paper, are real in every sense of the word. Part 2 of this series looks at some simple techniques Brad can consider using to get his remaining capital out of Microsoft Stock, intact and possibly even with a small profit.

Microsoft Stock Repair Strategy Part 2

Micrsoft Stock 16.8% recent decline

Microsoft Stock FullyInformed Members Strategy Article

This is a FullyInformed Members strategy article on Microsoft Stock. It is studying the use of different covered calls strategies including in the money covered calls. This article is 7 pages in length with 2300 words. This FullyInformed Members Article can be directly accessed through this link or Members can login here. Non-members can join here.

Microsoft Stock Internal Links

2012 Microsoft Stock Trades

2011 Microsoft Stock Trades

2010 Microsoft Stock Trades

2009 Microsoft Stock Trades

Index of Microsoft Stock Articles

Microsoft Stock Category

Microsoft Stock External Links

Microsoft Stock Investor Relations

Microsoft Stock Financial Statements