Shorting Microsoft Out-of-the-Money Put Options Works Well for Defensive Investors

Selling short out-of-the-money (OTM) put options in Microsoft Corp. (MSFT) is a proven strategy to gain income and potentially set a lower buy-in point for new investors. This play works well on off days like today.

MSFT is at $513.55 in midday trading on Tuesday, Oct. 14, down slightly in a down market. It's off a recent peak of $535.64 on Aug. 4 and more recently $528.58 on Oct. 6.