Transform Microsoft Stock Weakness Into A $1,700 Payoff With A Butterfly Trade

Microsoft (MSFT) stock continues to trade below a declining 50day moving average and is showing very weak relative strength. Let's look at a setup similar to a bearish butterflyon Adobe (ADBE) from this past week. On the chart, the key level to watch is support around 380. If that breaks, Microsoft stock could reasonably slide toward the 360 area over the next month. That gives a clear target zone for structuring a butterfly trade. Positioning a bearish butterfly around that level offers defined risk and hi ...