Carter Worth And Mike Khouw's Microsoft Trade

Carter Worth of Cornerstone Macro shared with the viewers of CNBC's "Options Action" his bullish technical analysis of Microsoft Corporation MSFT. He said the stock has underperformed Invesco QQQ Trust Series 1 QQQ recently, but its relative performance line has just bounced off its uptrend line. Microsoft has also returned to the level from which it broke out so it is trading at significant support and Worth expects it to move higher.

Mike Khouw wants to use options to set up a bullish options trade. He wants to sell the April $210 put for $4 and the April $250 call for $2. He would use the proceeds to buy the June $230 call for $13.50. The trading structure would cost him $7.50 so the breakeven for the trade is at $237.50.