Microsoft Stock has risen 8.6% since April 22. Recently investors have been emailing wondering about selling covered calls on Microsoft Stock but still wanting to avoid exercise. In other words these investors want to write covered calls but not lose their shares of Microsoft Stock. With the rise higher in Microsoft Stock many wonder if this is the perfect time to be writing covered calls.

Perfect Time For Covered Calls For Microsoft Stock

If we look at the past two months in Microsoft Stock there are many reasons to consider selling covered calls now. As most investors know, Microsoft Stock (MSFT) had a big jump higher on April 22 when ValueAct Capital Management announced they had purchased $2 billion of Microsoft Stock. Investors have now jumped in and bought stock. Many other investors have been long-term holders of Microsoft Stock. These long-term holders have no plans to sell Microsoft Stock as they have enjoyed years of dividend increases and indeed many have sold covered calls each time Microsoft stock has risen.

Microsoft Stock Covered Calls Strategy

Many investors now wonder if this is the time for covered calls yet again. Many investors are anxious to be selling covered calls now for terrific premiums but are worried that they could miss out on further rises in Microsoft Stock or worse, lose control of their stock. Here is a strategy I use that assists me in knowing when to sell covered calls on a rising stock and when to stay with Put Selling.

This is a FullyInformed Members Strategy Article on Microsoft Stock. It can be directly accessed through this link or Members can login here. Non-members can join here.