Microsoft Corp (MSFT) stock is trading at $491.54, down from $542.07 in October but up from $472.12 in November. Analysis suggests MSFT could be worth $682.55 based on strong free cash flow. Shorting cash-secured OTM MSFT puts could provide a 1.1% monthly yield and lower buy-in point.

Investors can consider shorting Jan. 9, 2026, MSFT puts at a $475.00 strike price, 3.36% out-of-the-money. This strategy offers a potential buy-in at $475.00 with immediate income of $5.63, resulting in a 1.185% short-put yield.

The breakeven buy-in point for the Jan. 9, 2026, MSFT put strategy is $469.37, providing 4.5% downside protection. Over the last 2 months, investors would have received a total income of $12.73, resulting in a 2.68% yield. This approach sets a lower potential buy-in point while generating income.

Read more at Barchart: How to Make a 1.1% Yield Shorting One-Month Microsoft Puts