Options🔒 Portfolio Pro

Options Strategy: MSFT Covered Call — May Expiry

Mitesh Patel · Apr 17, 2026 · 1 min read

With Microsoft trading near all-time highs post-earnings and implied volatility elevated, I'm selling a covered call on my MSFT position to generate income while capping upside. Here's the full trade setup, rationale, and risk/reward breakdown for the May 16 expiry.

MSFT Covered Call — May Expiry

Trade Setup

Underlying: Microsoft (MSFT) — currently at $425 Strategy: Covered Call Strike: $440 Call Expiry: May 16, 2026 Premium Collected: $4.20/share ($420 per contract) Breakeven: $420.80 (current price - premium)

Rationale

Post-earnings, MSFT is trading near all-time highs. Implied volatility is elevated (IV Rank ~65%), making option premiums rich. I'm selling the $440 call (approximately 3.5% OTM) to:

For information and education only; not investment advice. See the full disclaimer.