This morning on the weakness in Microsoft Stock I have begun again my naked put ladder on Microsoft Stock. I will post my trade later today. The drop to $28.80 pushed up puts premiums allowing me to add to my positions.
The stock is exhibiting lower lows and lower highs a sure sign of a bearish return to the stock.
MACD signaled stock down on Sept 24 and has been correct for the past 14 trading sessions. Since then there have been 9 distribution days (red bars below) and only 3 accumulation days (green bars). Today is still undecided.
If I didn’t like Microsoft stock I would be waiting for the accumulation days to begin to outnumber the distribution days before selling puts. I am only doing small quantities of puts.