Microsoft Stock Is on a Roll, Attracting Investors to Short Put Income Plays

Microsoft (MSFT) stock is on a roll and is already up almost 16% YTD to $277.66 as of March 23 close. That includes an 11.3% spike so far this month from $249.22 per share at the end of February. This positive performance is attracting investors to near-term out-of-the-money short-put income plays.

For example, on Feb. 28, I wrote a Barchart article, “Investors are Still Keen on Microsoft Stock, Making Short Put Plays Popular.” That piece showed that shorting either the $230 or $225 put option strike price for expiration on March 31 would be profitable. The premium for the $230 strike price was $2.15 per put contract and $1.51 for the $225 strike price.