Microsoft Corp. (MSFT) stock has been trading in a range for 2 months, making shorting OTM put options a strong play with a 1.5% income yield. MSFT is currently trading at $475.35, down from $492.02 a month ago and $496.82 two months ago.

Shorting out-of-the-money (OTM) put options in MSFT has been recommended, providing a 1.185% income yield. Analysts have raised revenue forecasts, with a potential price target of $682.55 per share. Current high price targets for MSFT are at $622.51 and $630.07.

Investors can consider shorting one-month MSFT puts with a 1.67% yield for a strike price 4% below the current trading price. The cumulative income from short-put plays over two months has been $13.23, with an annualized return of 17%. This strategy can provide a lower buy-in point and extra income.

Read more at Barchart: Microsoft Stock Is Trading in a Range