Microsoft (MSFT) Offering Possible 21.95% Return Over the Next 22 Calendar Days

Microsoft's most recent trend suggests a bullish bias. One trading opportunity on Microsoft is a Bull Put Spread using a strike $149.00 short put and a strike $144.00 long put offers a potential 21.95% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $149.00 by expiration. The full premium credit of $0.90 would be kept by the premium seller. The risk of $4.10 would be incurred if the stock dropped below the $144.00 long put strike price.

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

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

The RSI indicator is above 80 which suggests that the stock is in overbought territory.

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

Microsoft moving new jobs into Midtown as larger potential expansion looms
Wed, 27 Nov 2019 10:00:00 +0000
Microsoft is the second West Coast technology giant ramping up for an expansion in Midtown, a center for tech companies drawn by the pull of Georgia Tech, one of the country’s top engineering schools.

Man City stake sale breaks valuation record for a sports group
Wed, 27 Nov 2019 08:18:32 +0000
Manchester City’s owner has agreed to sell a $500m stake to Silver Lake in a deal that breaks a record in sports valuations and fuels the football group’s international expansion. The US private equity firm is buying more than 10 per cent of City Football Group at a valuation of $4.8bn, injecting new capital into the Abu Dhabi-controlled organisation that owns Manchester City and affiliated teams in the US and China. On Wednesday, Silver Lake and CFG announced the deal, which was first reported by the Financial Times.

FirstFT: Today’s top stories
Wed, 27 Nov 2019 06:16:36 +0000
to sell a $500m stake to Silver Lake in a deal that breaks a record in sports valuations and fuels the football club’s international expansion. The US private equity firm is buying more than 10 per cent of City Football Group at a valuation of $4.8bn, injecting capital into the Abu Dhabi-controlled organisation that owns Manchester City and affiliated teams in the US and China, according to several people with knowledge of the deal. California-based Silver Lake made its name investing in technology companies such as Alibaba, Dell and Skype but has pivoted in recent years to entertainment.

World’s Most Bearish Hedge Fund Loves These Stocks
Wed, 27 Nov 2019 03:51:29 +0000
Russell Clark is dubbed as the "world's most bearish hedge fund manager" because he is not only shorting the market, he is using leverage and shorting the market at the same time. Russell Clark's Horseman Capital returned 7.5% in 2018 when the S&P 500 Index lost nearly 5%. We shared his December 2018 investor letter (you […]

Dell Lowers Annual Sales Forecast on Intel Chip Shortages
Wed, 27 Nov 2019 00:37:23 +0000
(Bloomberg) — Dell Technologies Inc. lowered its annual revenue forecast after component shortages from supplier Intel Corp. blunted growth prospects despite buoyant corporate demand for new personal computers. Political and economic uncertainty also is weighing on sales of servers to big business clients.Adjusted sales will be $91.8 billion to $92.5 billion for fiscal year 2020, Dell Chief Financial Officer Tom Sweet said Tuesday during a conference call with analysts. The company said in August that revenue would be $93 billion to $94.5 billion in the fiscal year ending in January.Intel said last week it’s facing challenges delivering components to customers because of tight supply and limited chip inventories. Sweet said the development will affect Dell’s ability in the current period to produce some commercial computers for corporate clients, which is a key market. Business purchases of Dell’s PC often spur the sales of additional products and services, generating a higher profit margin.The company also continues to contend with falling demand for servers amid geopolitical and trade tensions. Weaker sales in China and among large corporate clients led a 16% decline in third-quarter revenue from servers and networking gear.“Obviously we’re not extraordinarily happy with them right now,” Sweet said about Intel in an interview. “I don’t have a pathway to mitigate the supply constraints that they’ve given me for Q4.”Shares fell more than 3% in extended trading, after closing at $53.19 in New York. The stock has gained 8.8% this year.This is the second time Dell has cut its annual sales forecast in the past three months. Sweet said he had always expected to narrow the range, as he did in August, because the initial revenue guidance was broad.Earlier, Dell said adjusted revenue increased 1.2% to $22.9 billion in the fiscal third quarter, just missing analysts’ average estimate of $23 billion.Dell reported profit, excluding some items, of $1.75 a share in the quarter ended Nov. 1. Analysts, on average, projected $1.59, according to data compiled by Bloomberg. During the conference call, Dell raised the low end of its 2020 earnings forecast to $7.25 to $7.40 a share, from $6.95 to $7.40. Lower component prices have aided the profit margins of Dell and rival HP Inc., which also reported earnings Tuesday.Revenue in the personal computer division increased 4.6% to $11.4 billion in the quarter. Commercial sales rose 9.4% due to corporate clients upgrading their computers to adopt Microsoft Corp.’s Windows 10 operating system. Revenue from consumers, on the other hand, fell 6.4% in the period.Sales from Dell’s data-center unit declined 6.1% to $8.39 billion, the Round Rock, Texas-based company said in a statement. Storage hardware sales increased 6.9%, but servers and networking gear pulled down the unit.Dell’s revenue growth is helped by its majority interest in software maker VMware Inc. VMware reported sales Tuesday that exceeded analysts’ estimates, rising 12% to $2.46 billion. Profit, excluding some items, was $1.49 a share, topping analysts’ average estimate of $1.42. VMware makes software that allows customers to combine multiple tasks on a single server, and is trying to shift to selling more programs that help companies run applications in the cloud and in their own data centers.Dell repaid about $1.1 billion of gross debt in the most recent period and has paid down about $3.5 billion so far this year. The company said it repaid more than $18 billion in gross debt since its EMC Corp. acquisition, announced at $67 billion, closed three years ago and is on target to repay about $5 billion of gross debt in fiscal 2020.\–With assistance from Dina Bass.To contact the reporter on this story: Nico Grant in San Francisco at ngrant20@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Andrew Pollack, Dan ReichlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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