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Kevin Kelly's Microsoft Covered Call Trade

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Kevin Kelly of Recon Capital Partners spoke on Bloomberg Markets about a covered call options strategy in Microsoft Corporation (NASDAQ: MSFT).

He thinks it would be a good idea to buy shares of Microsoft and sell the October 67.50 call for $2.50. With the long stock position, he is going to be able to collect dividend and he is additionally going to collect the premium from the short call position.

Kelly added that the premium offers some protection from a downside risk and if the stock trades higher he can participate in the upside until $67.50, which is approximately 5 percent above the current stock price.

Posted-In: Bloomberg Markets Kevin KellyOptions Markets Media

 

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