Dan Deming's Microsoft Options Trade

Dan Deming of KKM Financial suggested on Bloomberg Markets that investors should consider an options trading strategy in Microsoft Corporation (NASDAQ:MSFT).

He wants to sell the February 65 call and buy the March 65 call for a net debit of $0.16. In order to make money with the trade, Microsoft has to trade below $65 at the February expiration. After that, when the February 65 call expires worthless, the stock has to trade above $65.16, which is the break even point.