More Microsoft

Well I timed my exit from those SSO puts about perfectly. The market ended up drifting lower Friday afternoon and those puts would have finished in the money if I hadn't closed out that morning. Yesterday we finally got the bounce that I was looking for last week, but Microsoft is still hurting from the last few weeks. I'm down slightly on our original covered call position, and I'm going to take advantage to add some more exposure here.

• Sell to Open: 2 MSFT Jan 21 2011 24.0 Put @ $0.62

I doubt these will end up in the money, but I'm not afraid of owning MSFT at $24 with a 3.3% yield. With about $475 in margin requirements per option, this trade will give me a return of about 13% in less than two months.

The Numbers

• Cash: +$124
• Short Option: -$128
• Margin: +$950