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January 26, 2010 7:26 EST Related Symbols: MSFT
you're watching:
Mad About Options
An options-related take on Jim Cramer's latest recommendations and analysis on the latest securities and ETFs getting attention on the Street.
ONN.tv recaps option strategies for bulls and bears in Microsoft Corp.
Mad About Options takes a look at the stocks getting coverage from Jim Cramer, Fast Money casts and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.
The Pick – Microsoft Corp. (MSFT)
On Oct. 8, a Fast Money cast member told investors that MSFT has already popped 2%. Additionally, widely followed tech-writer Walter Mossberg of the Wall Street Journal gave Windows 7 a positive review and called it the best version of Windows yet. MSFT shares were trading at $30 at the time of this review, up from $25.72 at the time of the Fast Money and WSJ reports.
Bullish Option Trades on MSFT:
Investors who are bullish on MSFT bought two January 2011 22.5 calls for $5.10 to pay $10.20 in total. The call is now marked at $8 each, making this trade a winner of $5.80 with the stock up $4.28.
Bearish Option Trades on MSFT:
Bearish investors bought January 35 puts for $9.50 and sold January 25 puts for $1.20 to pay $8.30. The spread expired with the stock at $30.86. This trade was a loser of $4.16 with the stock up $4.28.
