From Nasdaq:

The Microsoft Corporation MSFT stock has two interesting options, a put and call contract from the December 2026 expiration. The identified put contract has a $315 strike with a bid of $27.50, representing an 8.7% return and a 3% annualized rate of return.

Compared to stock ownership, the put contract has a higher annualized figure. The investor’s only upside to selling the put contract is from collecting the premium for the 3% annualized rate of return.

The annualized 3% figure exceeds the 0.8% annualized dividend, as an investment has greater downside when buying shares in order to collect the dividend.

In a contrasting move, shareholders of Microsoft Corporation may want to sell a covered call at the $460 strike and collect an annualized 3.9% rate of return against the current stock price. This scenario adds an additional 4.8% annualized rate if the stock is not called away. Any upside would be lost if the stock is called, or if shares climb 24.2%.

On Monday, put volume among S&P 500 components has reached 2.56M contracts with a put: call ratio of 0.71 so far for the day. This was above the long-term median put:call ratio of .65..readFileSync

To read more, please visit:
https://www.stockoptionschannel.com/watchlist/



Read more: One Put, One Call Option To Know About for Microsoft Corporation (MSFT)