Microsoft Produces Strong FCF As Expected - Shorting OTM Puts is an Attractive Play

Microsoft Corp (MSFT) produced 33% higher free cash flow for the quarter ending Sept. 30. Moreover, it generated a strong 33.3% FCF margin after heavy AI capex. This implies it could hit a $5 trillion mkt cap over the next year, or +33% higher. 

Shorting out-of-the-money puts is an attractive way to play the stock. I discussed this in my last Barchart article on Oct. 14, “Shorting Microsoft Out-of-the-Money Put Options Works Well for Defensive Investors.”