MSFT After hours trading

[Gustaf]

Hi, I saw that MSFT bounced from about 22.5 to 24 after the regular market closed.

1. Why is this?
2. What will be the price of July Call 22.5 tomorrow.

(Iam having a covered call and i wanna get rid of the call option).

 

[trade7]

 

[Gustaf]

Quote from trade7:

To stupid question again?
Decipher..

 

[Gustaf]

Reuters
Microsoft tops profit forecast, sets share buyback
Thursday July 20, 4:44 pm ET

Stock up 6.1%

Ok, what will the option be worth then?
1.50++?

 

[CommunistMonkey]

you can cover the call but for all intents and purposes you just sold the stock at 22.5 (unless it opens below that tomorrow)

That's the downside of covered calls - if the stock runs you get only a small part of the upside and if it tanks you get all of the downside.

 

[Gustaf]

Quote from CommunistMonkey:

you can cover the call but for all intents and purposes you just sold the stock at 22.5 (unless it opens below that tomorrow)

That's the downside of covered calls - if the stock runs you get only a small part of the upside and if it tanks you get all of the downside.

Thx, yes i know its a trade off, well made a good return on margin anyways had em for a few days only.

Br

 

[brokerboy]

i don't think you will get 1.50 that might be the ask.