KDK Options has made a new straddle spread trade with Microsoft. The April $66.50 call and April $64.00 put were purchased for $0.90 before commissions and fees. The goal is to reach $2.00. A stop loss price has been set. Reasons for the trade are below:
- Microsoft on an upward trend with resistance at $66.00. It has hit $66.00 a few times and been knocked down with higher lows each time
- Healthcare bill vote is today which will have implications going forward for the market in terms of the ability to get legislation done
- Earnings are April 20th with other tech company earnings before hand expected to set the tone and move the industry
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