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Claim author · 22.06.2026 · I'm Buying Microsoft Stock at an Unthinkab...
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Forecast Economy 17.07.2026

Selling Microsoft Put Option Explained

"What I'm being told is, 'Paul, if you want the stock at 350 per share, someone will pay you $3.41 per share.' So, what this means is if on July 17th, the stock is above 350, I just keep my 341, I don't get the shares. If it falls below 350, I pay 350 for the stock, but I still keep my 341. So, essentially, I paid 346.6 for the stock because it's my 350 minus my 340."

ℹ️ In shortThe speaker explains that by selling a put option on Microsoft, he receives a premium, and if the stock price drops, he buys the shares at a lower effective price.

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Verification Analysis generated with AI Pro
Methodology The statement accurately describes the standard mechanics of selling a cash-secured put option. If the stock price remains above the strike price by the expiration date, the option expires worthless, and the seller keeps the premium received. If the stock price falls below the strike price, the seller is obligated to buy the shares at the strike price, with the premium received effectively reducing the net cost of the shares. The described scenarios and the calculation of the effective purchase price are consistent with how cash-secured puts work.
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Last review: 24.06.2026 Added: 24.06.2026
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AI-generated analysis: This result is an assessment by a language model, not an expert opinion or a legally binding verdict. Verify sources before making any decisions. Model: gemini-2.5-flash

For informational purposes only. Not investment, financial, legal or tax advice. Full disclaimer

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Transcript excerpt English

The stock's currently at 375. We saw my price is basically 348. Let's call it 350. So, I go to our options chain in our software. What I'm going to do here is I'm going to pick a date in the future that I want to own the stock at. I usually go a month or two out. So, let's go to July 17th, 2026. Here's the put side, here's the call side. What I'm being told is, "Paul, if you want the stock at 350 per share, someone will pay you $3.41 per share." So, what this means is if on July 17th, the stock is above 350, I just keep my 341, I don't get the shares. If it falls below 350, I pay 350 for the stock, but I still keep my 341. So, essentially, I paid 346.6 for the stock because it's my 350 minus my 340. So, you might be wondering, "Oh, that's pretty cool." But even more cool, right now the cash in my accounts are in US Treasuries. 90-day Treasuries making around 3.7%. If I did this over and over for an entire year, I'd make 12.2% per year on my cash. That's assuming I never get the stock. But that's what I want to look at. Like am I getting a dec

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