October 1, 2020 - MDT Alert (MSFT)

I am going to suggest you go ahead and book the profit on the MSFT debit spread.

MSFT is trading around $212.73 as I write this. And by closing the position today, the gain will be about 40% for 4 days.

Here is how you close the position:

Sell to Close October 16th - $207.50 Call for $8.20

Buy to Close October 16th - $212.50 Call for $5.00

The net credit will be $3.20 per spread. The debit when the trade was initiated was $2.30 per spread.

If you traded the suggested 6 lot, the cash return will be $.90 per spread or $540 for the 6 lot.

This works out to a gain of 40% for 4 days.

/by

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