Microsoft Offering Possible 9.41% Return Over the Next 31 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 9.41% return on risk over the next 31 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 $0.43 would be kept by the premium seller. The risk of $4.57 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 41.33 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Microsoft

Ford Profit Warning For 2014 Hits Stock
Wed, 18 Dec 2013 23:45:00 GMT
Investor's Business Daily – Inside Real Estate/Staff, New Issue America/New Issue Pipeline, Industry Snapshot/Default, New Issue America/Default, Making Money/Investor's Corner, Front Page News/Feature Story, Front Page News/General …

Oracle Second-Quarter Earnings, Sales Beat Estimates
Wed, 18 Dec 2013 23:19:00 GMT
Investor's Business Daily – Oracle Second-Quarter Earnings, Sales Beat Estimates

Low Surface Inventory Could Hamper Microsoft’s Q4 Hardware Results
Wed, 18 Dec 2013 23:02:20 GMT
TechCrunch – Demand for Microsoft’s new Surface 2 and Surface Pro 2 computers is outstripping supply, with shortages being noted online and off. Today, the online Microsoft Store itself ran out of devices as well, with Neowin noting that “all of the second generation Surface tablets are ‘out of stock’, one week before Christmas.” What’s going on? Two things, I think: Demand for Microsoft’s hardware is up, and supply is down. After taking a massive, and deathly embarrassing $900 million charge for building too many first generation Surface devices, Microsoft seems to have built fewer this time around.

A Surface Mini could be risky
Wed, 18 Dec 2013 21:58:40 GMT
The Motley Fool Australia – Rumours are now floating around that Microsoft (MSFT) could be planning to launch a Surface Mini — yet another device in Microsoft’s lineup of Surface tablets. The biggest issue with Microsoft’s tablet strategy is that it directly competes with the companies that license its Windows operating system and Office productivity suite. It’s not difficult to see what the problem is: While Microsoft gets the OS and Office at cost, the device vendors need to pay a non-trivial sum for these. This means that Microsoft either ends up with a real gross margin advantage over its partners, or it ends up with the ability to undercut its partners at the same gross margin level.

Oracle Shakes Off Wall Street's Worries, Beats Estimates in Q2
Wed, 18 Dec 2013 21:38:28 GMT
AllThingsD – A solid beat puts concerns of a slow quarter to rest.

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