I was early this morning doing Put Selling in Microsoft Stock. (Stock symbol MSFT Stock). Put Selling remains my primary investing strategy. There are so many reasons why Put Selling is such a great strategy there isn’t much need to mention them here. These two articles will help those who are new to Put Selling as a principal investment method. Here is why Put Selling is such a great strategy. Here is an article looking a Put Selling as a principal investment method. Here is an article explaining why Put Selling is superior to covered calls. For a complete listing of Put Selling articles select this index link.
Microsoft Stock Put Selling
This morning I sold naked puts in Microsoft Stock from December to January and stretched them from $28 down to $26. The next step though may be a short one with Microsoft Stock continuing to show weakness this morning. If Microsoft Stock breaks through $29 this morning or tomorrow, the Nov 17 $28 naked put for a quick 1 week trade may very well end up being the best short-term trade on Microsoft Stock for next week. Yesterday (Nov 6) with the rise in Microsoft Stock I closed all my positions waiting for the stock to sell off further.
Microsoft Stock $28 Put Selling Strike For Nov 17
The Microsoft Stock chart below shows the reasons why the $28 is so interesting. The stock was back to $28 just a 7 trading sessions ago. The stock managed to hold at those levels and I continue with a variety of naked puts on Microsoft Stock. I don’t see this stock plunging back to $25 in the near future as there is considerable support all the way back down.
With one week to go to the Nov 17 options expiry here’s what looks interesting to push up put premiums.
A) The Ultimate Oscillator is neutral so there is room for the stock to fall further which will push up that $28 naked put premiums.
B) The Fast Stochastic is showing that Microsoft Stock is moving lower with D period above K period there should be some further weakness in the stock short-term. If Microsoft Stock can push back lower and fall below $29, I will be put selling the Nov 17 $28 put.
Review Microsoft Stock Put Selling Trades This Morning
For Members you can continue reading this article and study the support levels to see why my put ladder on Microsoft Stock which I started in January of this year continues to do well. Members can login here. Non-members can join here.