DailyPlay – Closing Trade (MSFT) – August 19, 2024

Closing Trade

• MSFT – 27.57% gain: Buy to Close 1 Contract (or 100% of your Contracts) Sept 6th $420/$395 Put Vertical Spreads @ $6.41 Debit. DailyPlay Portfolio:  By Closing this Contract, we will pay $641. We initially opened this Contract on July 26 @ $8.85 Credit. Our gain, therefore, is $244.

Investment Rationale

As short term momentum starts to roll over off the back of a strong rally over the past two weeks, technology stocks are at risk of a pullback if equity markets start to retest recent lows. With 18 days left, our MSFT position requires managing and we are going to take profits on this trade today as MSFT lagged behind the market on its rebound.