• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Trade Alert - (MSFT) April 25, 2024 - BUY

Trade Alert

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.


Alert

 

Trade Alert - (MSFT) – BUY

BUY the Microsoft (MSFT) May 2024 $430-$440 in-the-money vertical Bear Put debit spread at $8.60 or best

Opening Trade

4-25-2024

expiration date: March 17, 2024

Number of Contracts = 12 contracts

As we enter the summer doldrums, I am willing to bet that Microsoft will not go to a new all-time high in three weeks. (MSFT) also has a rare 33% implied volatility for its options. Usually, it is much more boring than that. I believe that (MSFT) is entering trading range along with the rest of the AI world.

I can also use this short position to partially hedge the three long positions already in my trading portfolio.

I am therefore buying Microsoft (MSFT) May 2024 $430-$440 in-the-money vertical Bear Put debit spread at $8.60 or best.

Don’t pay more than $9.20 or you’ll be chasing on a risk/reward basis.

Only use a limit order. DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES. Just enter a limit order and work it.

To learn more about the company please visit their website at www.microsoft.com

This is a bet that Microsoft will not rise above $430 by the May 17 option expiration in 16 trading days, a new all-time high.

Microsoft Corporation is a Megacap American multinational corporation and headquartered in Redmond, Washington.[2] Microsoft's best-known products are the Windows line of operating systems, the Microsoft suite of productivity applications that include Word, Excel, and PowerPoint, and the Edge web browser. Its flagship hardware products are the Xbox video game consoles and the Microsoft lineup of touchscreen personal computers. Microsoft ranked No. 14 in the 2022 Fortune 500 rankings of the largest United States corporations by total revenue and it was the world's largest software by revenue in 2023.

Here are the specific trades you need to execute this position:

Buy 12 May 2024 (MSFT) $440 puts at………….……..…$45.00

Sell short 12 May 2024 (MSFT) $430 puts at……………$36.40

Net Cost:………………………….………….….........................$8.60

Potential Profit: $10.00 - $8.60 = $1.40

(12 X 100 X $1.40) = $1,680 or 16.28% in 16 days.

 

 

 

If you are uncertain about how to execute a bear put options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://www.madhedgefundtrader.com/wp-content/uploads/2016/02/Alert-e1457452190575.jpg 135 150 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2024-04-25 15:27:272024-04-25 15:27:27Trade Alert - (MSFT) April 25, 2024 - BUY

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: Trade Alert - (NVDA) April 25, 2024 - BUY Link to: Trade Alert - (NVDA) April 25, 2024 - BUY Trade Alert - (NVDA) April 25, 2024 - BUY Link to: Trade Alert - (AAPL) April 26, 2024 - BUY Link to: Trade Alert - (AAPL) April 26, 2024 - BUY Trade Alert - (AAPL) April 26, 2024 - BUY
Scroll to top