Microsoft Corporation Puts

On 1/29, we sold four April 28 puts on Microsoft Corporation (ticker symbol: MSFT) for a net credit of $437.04, and have reserved the cash necessary for exercise ($11,200). If the puts are exercised, we'll do a full write up for an investment in MSFT. We think MSFT is reasonably priced at 15x trailing earnings (before subtracting excess cash on its balance sheet) and believe its stock price will be lifted by considerable tailwinds through 2010 due to the successful release of Windows 7.