Today, I have a new trade for you. But before I get to that, we have two options set to expire this month that I’d like to address…
Both our SPDR S&P 500 ETF (NYSE: SPY) and Manulife (NYSE: MFC) options have moved against us. And as more time passes, more value will erode.
Here’s what I want you to do to prevent further losses:
Action to take: Sell to close the MFC December $17 call option (MFC151218C00017000) at the market.
At last glance, it was trading at $0.10.
Action to take: Sell to close the SPY December $206 put option (SPY151219P00206000) at the market.
At last glance, it was trading at $1.94.
Now for our November options play…
Ever since Satya Nadella became CEO at Microsoft (Nasdaq: MSFT), things have been going nicely for the company.
Windows 10 has a faster adoption rate than any other version of Windows before it.
Microsoft’s cloud division is the fastest growing part of the company.
And new hardware, like the Surface Book, are wowing consumers and critics alike.
Not only is Microsoft doing well, but so is its share price. And that trend looks set to continue for some time. So here’s what I want you to do:
Action to take: Buy to open the MSFT January 2017 $50 call option (MSFT170120C00050000) up to $8 per contract.
At last glance, it was trading at $7.50.
If Microsoft can go up another 15% next year, you could double your investment.
If you do not know how to make this trade yourself, call your broker and ask for assistance.
You should receive a confirmation within one to two hours after your order is made. If you do not receive this confirmation, let your broker know.
Finally, if you have any questions about this trade, simply send an email to email@example.com with a subject line of “SI Option Question” so that we can give you an answer immediately.
Charles Del Valle
Editor, Strategic Investment