Andrew Keene's Microsoft Options Trade
The company is going to report earnings on October 20 and Keene thinks the stock is going to breakout to the upside after a couple of months of sideways trading. He believes it is going to jump to 62.50 and he wants to buy the November 60/62.50 call spread for $0.45 to make money on the potential move higher.
The trade breaks even at $60.45 or approximately 5 percent higher and it can maximally make $2.05, if Microsoft trades at $62.50 or higher at the November expiration.
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