$350 profit in MSFT
- themoneyloaf
- Apr 24
- 2 min read
Updated: Apr 26
Happy weekend!
If you've been subscribed for a while, you'll know I love put ratio spreads because they provide an opportunity to make more than 100% of the initial premium, which is what happened with this trade in Microsoft.
This week:
$350 profit in Microsoft (MSFT)
$350 profit in MSFT
MSFT (and tech in general) hasn't been having a good time so far in 2025, so a while I sold a $365/370 put ratio in MSFT, expiring April 17 (this past Thursday), and received $260 in premium up front.
The put ratio is one of my favorite strategies (and one I teach in my course) because it provides room for being wrong.
Typically when selling put options, you want them to stay above whatever strike price you sold them at. As you can see from the chart below, MSFT dipped as low as $354 during the tariff volatility.
MSFT did rebound, but not fully, which actually worked in my favor because when a stock trades within the 2 strikes of a put ratio, that's where the opportunity exists to make extra profit.
However it also does make things more complicated because you don't want to have one leg expire in the money because that creates all sorts of complications that can be difficult to unwind.
For that reason, with MSFT hovering around the $370 mark on Thursday, I decided to close the whole position for an additional $90 in credit, bringing total realized profit to $350, or 135% of max profit.
MSFT has performed decently in 2025 with $1,010 in realized profits from just 3 trades.
Keep in mind MSFT stock is down $50 or 12% so far in 2025, which is why selling options is a great way to complement other long term strategies.
Even though my long term stock and ETF positions are down thanks to the tariff drama, I can still continue to generate cashflow to add to my portfolio every month.
As always, you can join my private community and receive these same updates in nearly real-time.
Closing thoughts & useful links
Next week brings earnings in many portfolio regulars like KMB, TXN, PEP, PG, CL and ABBV - I'm hoping at least a couple of them provide an opportunity for new positions.
Have a good weekend!
Free mini course: Kickstart your personal finances in 5 weeks
Latest Youtube video: comparing my 8 income streams in 2023 vs 2022
Improve your financial life with my budget and wealth tracker that helps to allocate your budget, calculate savings rate, track your sinking funds, net worth and progresses towards FIRE with minimal input from you - most of it is automated.
Sign up for real time updates (not recommendations) within my portfolio with the Bread Crumb subscription
This article is for educational purposes only. This is my own portfolio which is being managed according to my goals and risk tolerance. Your situation is likely different and you should do your own due diligence before investing in stocks or options.
Comments