Bought 100 Shares Microsoft

Good morning,

Microsoft ( MSFT) is one of the best companies in the world, and will be for a long time! Yesterday MSFT closed right around $262 per share and was announcing earnings after the close. As expected they had a great report. At about 4:10pm the stock was down about $9. I love the stock but it really doesn’t fit into my strategy. It’s a high priced stock and the one week premiums never thrill me. But with the stock down on great earnings, and me having money available in my buying power, before I closed my computer for the night I decided to place an order to buy 100 shares.

With the stock in the $253.25 area I adjusted my computer to “After Market” trading and placed an order to buy 100 shares of MSFT at $253. I wasn’t immediately filled so I closed down for the night with the order placed.

This morning I opened my computer and noticed I was filled. In the “Pre-market” the stock is at $255 and I own 100 shares at $253.

4/27/21 – Buy 100 Shares MSFT @ $253.00

 

The question is what am I going to do with these shares? Can this be a big Grasshopper Trade? I’m not a buy and hold investor and the premiums never thrilled me for selling Calls.

I’m going to take the watch and see approach.

I might place the shares in my gift account for my young relatives.

I might hold and see what the premiums are today and sell a 1 contract Call.

I might use them as an expensive Grasshopper trade ($25,300 for 100 shares) and put them in “The Grasshopper Field.”

I might just hold them until MSFT is up $10 and make a decision.

I don’t know, I’ll see what today brings at the open. I will tell you one thing, I don’t think I’ll be losing money on this stock.

 

Successful trading,

Steve

The Options Coach