Jim,
You are correct, and sorry if I was not clear. It would be to initiate PUTS on MSFT.
Since earnings is on Wed after the close, per Darth's response, then the buy-in time would be either tomorrow or Wed. I would say that if we see 138-139 tomorrow, that should be a good buy-in price, since 139-140 is the next resistance line. If tomorrow lingers around 135 and the overall market is up, then I will wait till Wed to see if it continues up a bit more, before the close on Wed.
As I said in my previous note, keep in mind that if MSFT gets close to 140, the NAZ will be that much more overbought. I dont normally give targets, but what do you think if MSFT gets near 140 - is the 130-135 range reasonable for the downside. If MSFT goes no higher than 135, where it is now, 130 still seems reasonalble and the pullback should be fairly quick (within a few days - so there should not be too much time premium loss).
If the news is really good for MSFT, just dont think it can run up that much with the NAZ as overbought as it is; therefore feel that the downside is greater than the upside.
Seeya |
