The Play Of The Day
06-25-99, 8:19 AM EST
Good Morning Stock Fans!
Today's Play of The Day is: Microsoft (NASDAQ:MSFT) "Short to $79.00" Microsoft Option Puts JULY 80's (MSQSP)
Stock Fans! I had me eye on Microsoft (NASDAQ:MSFT) all day yesterday. The testimony in the (NASDAQ:MSFT) antitrust trail is now over. With that in mind (NASDAQ:MSFT) might just look to go higher or will it?
The stock had more volume then the prior day and went down. This is a bearish sign. It also lost the $85.00 dollar a share level after it had broken over it getting as high as $86.25. It closes at $84.6250 per share, under that crucial area of $85.00 per share where it has bounced now 3 times on open and closes. I call this strong support.
I also don't like how it had tracked up short of $90.00 a share a psychological but that number is one investors look at. Falling short of it at $89.00 its month high achieved on 06-21-99 one that investors look at. I like MSFT to fall even more after it could not regroup and get back to that crucial $85.00 dollar range yesterday
With all this in mind it looks to me like this is a great opportunity to short MSFT and to go after MSFT JULY 80 Puts. (MSQSP) I am not looking for anything less then $80.00 in the next few days. However with the drop to around $80.00 anything less we break under another psychological number and head into the hi- 70's range.
So, That is today's "Play of The Day!". I will look for MSFT to pull back after it should open a little bit higher as soon as weakness appears I will make both my moves on the shares shorting and on the options buying puts.
MSFT- short to $80.00
MSFT option puts (JULY 80's) symbol- (MSQSP) 3-4 days)
Target: MSFT to fall under $79.00 a share. 3 days
OK READY BREAK!
Have great weekend!