$MSFT 20260515 390.0 PUT$ I opened a Cash Secured Put (CSP) on MSFT yesterday, taking advantage of the recent bearish price action to secure a better entry point. I generally prefer entering these positions on red days as it allows me to either collect a higher premium for my target strike or potentially set an even lower strike price for a better margin of safety.
While Microsoft’s recent headline earnings were strong, the stock has faced some headwinds that created this opening. The market seems primarily concerned with the massive ramp-up in capital expenditure, which is projected to hit $190 billion for the 2026 calendar year. This aggressive spending on AI infrastructure is weighing on near-term free cash flow and testing investor patience. Additionally, despite Azure’s solid performance, its growth trajectory has shown signs of flattening sequentially, which often causes a re-rating for high-growth stocks. There’s also some lingering caution regarding the concentration of the commercial backlog with OpenAI and a softer outlook for the Windows and devices segment as the post-pandemic upgrade cycle cools off.
By selling the put during this period of softness, I'm effectively getting paid to wait for a price level I'm comfortable with, especially as the market balances these long-term AI ambitions against immediate fiscal discipline. I'll be keeping a close eye on the technicals to see if this bearish sentiment stabilizes or if we see further divergence in the coming weeks. | Side | Price | Realized P&L |
|---|
| Sell Open | 0.75 | +18.67% Holding |
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