$MSFT Options Action web extra trade - scott

21 sep - scott doing the web extra again tonight and answers a viewer note, heres the clip web extra . viewer writes she has held the stock for "a very long time and has done nothing"... thats seems a couple years to me.. but then again its up 30% since last year..regardless..depends on your thesis for entering into MSFT.. for the dividend, for the tech exposure, for the windows 8 hype..dont know but also depends on how many shares she has.. have 1000 shares and wish you had bought apple...then dont mess around looking for a secret options strategy to make something happen in order to get out.. if "its done nothing".. sell..sell it now and get into AAPL Jan2015 DITM leaps with that money... sell whats not moving or what hasnt moved and put it to work elsewhere.
    but if you are married to MSFT and still want some type of options play AND want to get out , scotts Nov Ratio spread might work . see all of scotts on-air trades in this google docs spreadsheet

Buy the Nov 32/33 call ratio spread (buy one 32, sell two 33's) for zero (for every 100 shares you own), its a good setup.. if its below 32 at opex then no harm no foul, above 34 and you stock gets called away

i like ratio spreads and profit range on this one at Nov opex is 32-34. my alternative is if you want to keep holding, keep collecting that dividend, stable stock price..yada yada.. then instead go out 2months and sell the Nov 33 covered call for about .31... if you are ok with selling your stock a bit higher be more aggressive and sell the Nov32 covered call at about .60.. collect that premium..collect your dividends, keep the stock.. depends what your thesis is.

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