MSFT Cutting Credit Spread Losses Short
The name of the game in trading is knowing when to cut your losses short. Goldman Sachs upgraded MSFT in premarket trading today, which caused a gap up in the opening price. We're in the red about $105 from an originally $252 max credit trade. We're going to wait for market close before cutting our losses on the position. If the close looks to be as if it's going to be above our moving averages (highly likely), we're going to take the loss. If not, we'll hold the position through Monday to determine whether to continue playing the game and even potentially open another credit spread on the Bull Put side for some time premium
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