{
  "id": 1564632,
  "title": "Investors in Microsoft Love Shorting Out-of-the-Money MSFT Puts",
  "url": "https://urgent.news/2026/08/16/investors-in-microsoft-love-shorting-out-of-the-money-msft-puts",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-16T13:15:02.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/options/articles/investors-microsoft-love-shorting-money-131502468.html"
  },
  "original_language": "en",
  "account": "Microsoft's stock has been attracting short-put investors looking to set a lower buy-in point and collect income. MSFT closed at $495.40 on Aug. 14, 2024, after a significant jump following its July 29 FY26 earnings release. The article discusses how Microsoft generates strong free cash flow (FCF) and is likely to continue doing so despite heavy capex spending. Analysts have raised revenue forecasts, with MSFT's revenue expected to reach $391.17 billion by June 2027, a 17.9% increase, and $468.37 billion by June 2028, a 41.2% increase. This growth in revenue could lead to a significant jump in FCF, potentially reaching $69 billion in Q4 and $96 billion by FY28. Using a 2.0% FCF yield metric, MSFT could have a higher fair market value (FMV) than its current market cap of $3.679 trillion. One way for investors to play this is by shorting near-term out-of-the-money put options, such as the $475.00 put expiring on Sept. 18 with a midpoint premium of $7.03. This strategy offers a short-put premium and a lower breakeven point, with the potential for an 18.6% upside over the next year.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}