Microsoft Offering Possible 6.84% Return Over the Next 30 Calendar Days

Microsoft's most recent trend suggests a bearish bias. One trading opportunity on Microsoft is a Bear Call Spread using a strike $38.00 short call and a strike $43.00 long call offers a potential 6.84% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $38.00 by expiration. The full premium credit of $0.32 would be kept by the premium seller. The risk of $4.68 would be incurred if the stock rose above the $43.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Microsoft is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Microsoft is bearish.

The RSI indicator is at 33.45 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Microsoft

[$$] Ex-Microsoft Employee, Partner Charged With Insider Trading
Fri, 20 Dec 2013 03:10:14 GMT
The Wall Street Journal – The agency charged a former senior portfolio manager at Microsoft Corp., along with a friend and business partner, with insider trading.

Red Hat: Lots of OpenStack Deals, Though Still Early
Fri, 20 Dec 2013 00:43:00 GMT
Barrons.com – Following a better-than-expected fiscal Q3 report tonight from Red Hat (RHT), and an upbeat Q4 forecast as well, shares are up $5.97, or 12%, at $54.97 in late trading. CEO Jim Whitehurst was kind enough to spend a few minutes talking with me by phone following the company's conference call with analysts. One big feature of the quarter was the company's software billings, which came in at $453 million, up 19%, and, as Whitehurst pointed out to me, above Street expectations for perhaps $421 million, or just 11% projected growth. Billings were the big problem for Red Hat last quarter, causing the shares at the time to drop 11% in the after hours.

500px brings its photo sharing to Windows Phone
Fri, 20 Dec 2013 00:07:00 GMT
Engadget – Windows Phone users wanting to browse 500px photo galleries have so far had to rely on unofficial apps, but they can now go straight to the source thanks to an official app for Microsoft's platform. As …

Hold the Obit: Best Buy's Not Dead Yet
Fri, 20 Dec 2013 00:00:58 GMT

Ex-Microsoft manager and friend charged with insider trading
Thu, 19 Dec 2013 23:23:23 GMT
Reuters – The U.S. Department of Justice and the Securities and Exchange Commission charged two Seattle men on Thursday with 35 counts of illegally trading on private Microsoft Corp (NSQ:MSFT) information, which prosecutors said netted the pair more than $390,000 in illicit profits over an 18-month period. Brian Jorgenson, a senior portfolio manager at Microsoft, passed information to a former colleague, online day trader Sean Stokke, who executed the trades, according to prosecutors. According to complaints filed by the department and the SEC, the scheme began in April 2012 when Jorgenson, 32, found out through his job in Microsoft's treasury department that the software company was planning a multi-million dollar investment in the digital business of bookseller Barnes & Noble Inc (NYS:BKS).

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