MSFT Stock Today: This Bearish Call Spread Play Puts $90 In Your Pocket Right Now
Microsoft (MSFT) has tumbled in recent days, dropping below the 50-day moving average, as well as the 21-day exponential moving average. So it may be worth switching to a short-term bearish view on MSFT stock.
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Traders who think MSFT will not reclaim the 50-day line in the next few weeks could look at a bear call spread as an option trade.
A bear call spread involves selling an out-of-the-money call and buying a further out-of-the-money call.
The strategy can turn a profit if…