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Sell-side stock analysts continue to raise their price targets on Microsoft Corp (MSFT) stock. One way to play this is to sell short out-of-the-money (OTM) MSFT puts. They provide a short-put yield of over 1.3% one month out for a 4% lower strike price.
MSFT is trading at $492.50, just off its recent peak of $497.45 on June 26. It could have much further to go, based on our free cash flow (FCF) based price target and analysts' recent recommendations.