Market Overview

Dan Nathan's Microsoft Options Trade

Share:
Related MSFT
What Are Wall Street's Top Analysts Saying About Microsoft Post Q4?
Tech ETFs To Buy As Microsoft Beats Big On Earnings
Emerging Markets, Tech And Momentum Plays Among Top Gainers (Investor's Business Daily)

On CNBC's "Options Action," Dan Nathan spoke about an options trade in Microsoft Corporation (NASDAQ: MSFT), which is due to report earnings on Thursday.

Nathan thinks that it would be a good idea to sell the July 75 call for 65 cents and buy the September 75 call for $1.30. This options structure is called a calendar spread and in this case it costs 65 cents to initiate the position. Nathan wants the stock to trade up to $75 after the earnings, but it's important that it doesn't close above $75 at the July expiration. If the July call expires worthless, Nathan is going to own the September 75 call for 65 cents.

Posted-In: Dan Nathan Options ActionCNBC Options Markets Media

 

Related Articles (MSFT)

View Comments and Join the Discussion!