- Microsoft shares surged after reporting Q4 earnings, adding $450 billion in market capitalization in a single trading day.
- The company's positive infrastructure spending outlook helped chipmakers and hardware suppliers stabilize after experiencing significant declines earlier in the month.
- Options analysts recommend selling weekly short strangles on Microsoft to capture high premium and benefit from time decay.
Quotes
“Unless this trade is done against an existing long position, you could face in theory unlimited losses as being short that call is effectively the same as being short the stock.”