$Direxion Daily MSFT Bull 2X Shares (MSFU.US)$ everybody see...
$Direxion Daily MSFT Bull 2X Shares (MSFU.US)$ everybody sees what's going on with Microsoft the earnings are great their guidance is a little light it's getting marked down some of the extent of the markdown in my opinion is pre-election jitters. the fact of the matter is Microsoft is not going away it's not like they're a biotech startup that is in a financial dilemma they're not going to get approved by FDA and the stock craters.
this is one of the world's greatest companies and you buy great companies on weakness and let management continue to execute their business plan over time.
what I'm going to do is sell some puts on the 2x leverage ETF to collect the premium. if it trades down post-election because Harris wins that's fine I'll take the stock.
so you go back you pull a weekly chart and you look to see what was the worst event that has happened this year to stocks and it happens to be that Black Monday August 5th. that was the culmination of a month-long Japanese trade unwinding that started July 5th.
I think many people will agree that what happened then is far worse than what's going on right now.
so if we look at the low in this ETF it was 36.29, and I don't believe we're going to retest that at all so I'm going to give myself a bit of a cushion I'm going to go to $39. and I'm going to sell those puts for November 15th on the open that's where you will collect the most premium in my opinion and you can run a market order after the Market opens the volatility will come out of the premium of that option and you'll get a bid and offer with a spread and it will be difficult to be executed in the spread.
so right now pre market it's down $ 3 at 41.50.
yesterday at the close the 39 strike was 50 cents bid 80 cents ask it should print about a dollar fifty on the open. which means you have 16 days of risk time value we do have to go through an election there may be a sell-off if Harris wins, and this is the potential for taxing unrealized gains so people may roll the dice and take the profits this year because it will be at a much lower tax rate than next year.
either way collecting $1.50 at a 39 strike would mean my cost basis is $37.50 and I believe that the markets will stabilize and trend higher regardless of who is elected and I believe Microsoft will still be around 4 years from November 6th.
This is what I'm going to do this morning
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36 yrs in the trenches, raised 100mil for start ups, syndicate ipo's, yrs on trading desk mkt maker.
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slam-dunk-1 : Insightful analysis!
Euler007 : Harris? Or Trump?