$MSFT Earnings Report Tonight to Boost Stock?

Microsoft

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$MSFT this time last year moved over 5% post earnings from $27.35 to almost $29. I think we see a move to $30 tonight post earnings. In the chat room on Tuesday I spoke of IBM when it was at $195 and said it was going over $200 post earnings. It ended up going over $208 and the $.31 $205 calls went over $2.00. Yesterday before the bell I called for an $AAPL decline of over 10% and said that the market would shrug it off and trade positive, in spite of $AAPL's huge weight in the indices. Sure enough $AAPL dropped over 11% and the markets are at new 5 year highs and trading modestly higher in spite of AAPL's swoon.

Which brings us to MSFT. The chart is saying people don't like the stock, which is the perfect time to be on the other side of the trade. $MSFT $28 calls I bought this morning on an order I placed before bell at $.24. I was filled at the lows and I am holding through tonight's earnings report. $MSFT could tumble to $25, the stock could stay flat, and in each case I will lose 100% of my investment. But if MSFT rallies like I think it will I stand to profit 300-500% on top of my already 95% gain.

Profile photo of uranium-pinto-beansKnown to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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