Options trading on Microsoft when the market is at all-time highs but MSFT is nowhere near its peak. Put ratio spread setup: buy one 390 put, sell two 380 puts in June for a $2 credit with 86% probability and a break even down near 370.
The buying power issue on a $400 stock is real at $5,300 required, but options trading for beginners and experienced traders alike can cut that in half or more by buying a wing below. Adding the 335 put for about 55 cents drops buying power from $5,300 to around $2,400, and going even tighter brings it to $900. Same probability, less capital tied up.
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CHAPTERS:
00:00 Microsoft: Lagging While the Market Hits All-Time Highs
00:31 Why This Is a Bucker Worth Playing
00:46 Put Ratio Spread Setup: Buy 390, Sell Two 380s i...