Sunday, January 25, 2026

msft stock earnings coming sell put option best date best price

 msft stock earnings coming sell put option best date best price

Microsoft (MSFT) is confirmed to report its Q2 fiscal 2026 earnings on 
Wednesday, January 28, 2026, after the market close. 
Best Strategy Dates
  • Optimal Selling Date: Monday, January 26 or Tuesday, January 27. Selling 1–2 days before earnings typically captures the highest Implied Volatility (IV), which inflates option premiums.
  • Best Expiration Date: January 30, 2026. This is the first expiration date after the earnings announcement, providing the highest sensitivity to the post-earnings "volatility crush" (the rapid drop in IV that benefits sellers). 
Target Strike Prices
Microsoft's stock price was approximately $465.95 as of January 23, 2026. Based on current options activity and expected moves: 
  • Conservative (Out-of-the-Money): Strike prices between $430.00 and $440.00. These strikes are roughly 5–8% below the current price, offering a buffer against a potential post-earnings dip while still collecting significant premium due to elevated IV.
  • Moderate Risk: Strike price of $450.00. This is closer to the current "Max Pain" level for the Jan 30 expiration and has high open interest, suggesting strong market support near this level.
  • Expected Move: The options market is currently pricing in a move of approximately ±$24.11 (5.17%) by January 30. 
Summary of Key Data
Metric Details
Earnings DateWednesday, Jan 28, 2026 (After Market)
Current Stock Price~$465.95 (as of Jan 23)
Recommended ExpirationJan 30, 2026
High Open Interest Strikes$450.00 and $460.00
Market Expected Move±5.17%
Note: Selling naked puts involves substantial risk if the stock price falls below the strike price. Ensure you have the capital to purchase the stock if assigned or consider a Bull Put Spread to limit potential losses. 
AI responses may include mistakes. For financial advice, consult a professional. Learn more

No comments:

Post a Comment