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.
Tech Alert - Microsoft Corporation (MSFT) – EXPIRATION
Expiration of Microsoft Corporation (MSFT) August 2020 $190-195 in-the-money vertical BULL call spread at $5.00
Closing Trade – NOT FOR NEW SUBSCRIBERS
8-21-2020
expiration date: August 21, 2020
Portfolio weighting: 10%
Number of Contracts = 24 contracts
This was bullish trade that Microsoft will stay above $195 by August 21st and after a few rough days where the price dipped to $199, it was nothing but smooth sailing as shares rocketed over $210 on the back of news that it is in talks to acquire mega Chinese growth asset TikTok.
Some of the highlights from the past quarter include robust execution and better-than-expected demand from customers for commercial cloud offerings that drove the quarterly results. Solid uptick in Teams on the back of coronavirus-led work-from-home, stay-at-home, telehealth, and online learning wave, remained noteworthy.
Moreover, strong Commercial business positively impacted earnings and revenues. Commercial bookings increased 12% year over year (12% at cc), courtesy of robust renewal implementation, and growth in big, long-term Azure contracts. Commercial remaining performance obligation came in at $107 billion, up 23% year over year at cc. Commercial revenue annuity mix was 94%, increasing 4% year over year, driven by the ongoing shift to cloud infrastructure.
Commercial cloud revenues were $14.3 billion, surging 30% year over year (up 32% at cc).
Here are the specific trades you need to execute this position:
Expiration of 24 August 2020 (MSFT) $190 call a.….………$23.15
Expiration of 24 August 2020 (MSFT) $195 call at………….$18.15
Net Proceeds:……………………..…….………..…...............….....$5.00
Profit: $5 - $3.98 = $1.02
(24 X 100 X $1.02) = $2,448 or 24.48% in 29 days
