Microsoft 3 : Cash Secured Puts

March 8 , I am going to open a new position on Microsoft . 
I do my usual Open Interest analysis.

There are ITM call @105 and 110 (good sign) . Always @105 there is a wall of OTM put (support line). I found volumes and premium @106. 

Max Pain@107

I am going to put my trade@106 and in case of assignation I am available to own this stock.

Conclusion: MSFT , sold 2 CSP strike 106@0.47 , expiry March 15. Weekly return 0.44% , AROI (annual return on investment) 22.9%

Share on your social this article!