Headline: Quick Gains in Big Tech: My 16% Microsoft Swing Trade
In the current market, patience is a virtue, but speed is a weapon. Yesterday, I spotted a high-probability entry on Microsoft (MSFT) as it tested support levels during a brief dip.
The Setup On April 20, MSFT showed some weakness, sliding toward the $416–$418 range. Believing this was a temporary pullback rather than a trend reversal, I picked up the June 18 $420 Calls for $2,190. Using a June expiration gave me a "safety net" of time value (theta), though my goal was a quick scalp.
The Exit The thesis played out perfectly. Tech sentiment shifted overnight, and MSFT surged back above $424 today. I didn't wait for a home run; I hit a clean double and sold the position for $2,540.
Trade Analysis
Asset: Microsoft (MSFT) $420 Call, Expiring June 18
Entry (Apr 20): You bought the call for $2,190.00.
Exit (Apr 21): You sold the call for $2,540.00.
Profit: $350.00 (a 16% return in ~24 hours).
Key Takeaways:
Buy the Fear: Snagging calls during a red day often provides the best risk/reward.
Strike Selection: Choosing a $420 strike when the stock was under $420 meant I was buying slightly out-of-the-money, maximizing the delta gains as it turned in-the-money.
Discipline: A 16% gain in 24 hours is an annualized return most funds would dream of. Take the profit and move to the next setup.
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