More MSFT Calls

I've been waiting for MSFT to rise enough to be able to sell weekly calls against it at $27 or $28, but it's just not happening. Instead I'm going to take advantage of the higher volatility in the market to get a higher price on some further out calls.

• Sell to Open: 1 MSFT Nov 19 2011 28.0 Call @ $0.47

This will give me an immediate 1.8% return in cash. Given the market weakness and Microsoft's price action the last year or so, I don't expect the stock to get called away from me by November, but if it does, I'll close out the trade with over 10% capital gain(plus the 2+% I got in covered call premium) in just 6 months.

The Numbers

• Cash: +$47
• Short Option: -$48