First Red Day in 9: Here's the Microsoft Trade
Summary
The host analyzes a rare market decline across major indices and executes a bullish put credit spread on Microsoft, which has lagged recent gains. Targeting high implied volatility, he sells July 395 puts and buys 405 puts for a $3.30 credit, aiming for an 82% probability of profit. The strategy requires $5,600 in buying power with a break-even point near $382, seeking quick profits if the stock stabilizes.
Topics discussed
Market overview: First down day in nine days
Call to action: Like and subscribe
Microsoft trade setup and rationale
Selecting strikes and delta probabilities
Credit received and buying power requirements
Profit potential, break-even, and risk analysis
Promotion for Tasty Trade brokerage
Standard financial disclaimer
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