Out of a MSFT Call Option

On Monday I bought a 2 contract Microsoft (MSFT) option. This was not quite a LEAPS because it’s Expiration Date was 1/15/21. LEAPS are consider over a year. This was only a 6 month option. I do not like owning Long Options with less than 6 months to expiration, so I did get into this position as a short term play.

I bought 2 MSFT 1/15/21 $210 Calls for a premium of $18.75. The stock was up the last few days and today the premium was up to $22.25. I decided it was time to sell. I didn’t want to see the stock go down with only 6 months remaining until expiration. If it did, I could lose the profit I have and Time Decay could make it tough to get it back. I locked in $700 and it’s going into my mattress.

7/6/20 – Buy to Open 2 MSFT 1/15/21 $210.00 C @ $18.75  

7/9/20 0 – Sell to Close 2 MSFT 1/15/21 $210.00 C @ $22.25

Profit +$700

This was a 3 day trade with a Return on Investment (ROI) of 18.6%.

I still have 2 more LEAPS positions with MSFT. They are both 1 contract and they expire on1/21/22.

Successful trading,

Steve

The Options Coach