Trade Alert – (MSFT) August 12, 2025 – BUY

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Tech Alert – Microsoft Corporation (MSFT) – BUY

Buy Microsoft Corporation (MSFT) September 2025 $490-$495 in-the-money vertical BULL CALL spread at $4.15

 

Opening Trade

8-12-2025

expiration date: September 19, 2025

Portfolio weighting: 10%

Number of Contracts = 24 contracts

Microsoft Corporation (MSFT) is a bellwether for tech stocks, and after positive earnings, the tech sector is now motoring ahead because investors are bracing for rate cuts.

In the short term, a highly bullish tactical trade in MSFT is warranted.

Don’t pay more than $4.25.

Here are the specific trades you need to execute this position:

Buy to Open 24 September 2025 (MSFT) $490 calls at…………$40.65

Sell to short 24 September 2025 (MSFT) $495 calls at………….$36.50

Net Cost:……………………..…….………..…………………………………..$4.15

Potential Profit: $5 – $4.15 = $.85

(24 X 100 X $.85) = $2,040 or 20.48% in 38 days

 

 

 

 

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.