How Two Microsoft Hedges Reacted To Friday’s Drop

Tim raised an interesting question in a post on Friday (“Does Microsoft Matter“). As Tim noted, apparently its earnings miss and plummeting share price didn’t matter much to the broader market. But it did, of course, matter to Microsoft longs. Last month, when Microsoft hit a new high, I posted two ways for those longs to hedge against greater-than-19% drops over the next several months (“Two Ways Of Locking In Microsoft Gains“). In this post, we’ll look at how those two hedges reacted to the stock’s drop on Friday. (more…)