Wheel strategy · $MSFT
Wheeling $MSFT covered calls & cash-secured puts
Microsoft Corporation last traded at $516.17 (Sep 25, 2026). The featured monthly expiry is Oct 16, 2026, 19 days out.
Price
$516.17
52-week $349.20 – $553.72
Volatility
26%
Implied, at the money
Expected move
±$31.03
±6.0% to Oct 16, 2026
Dividend yield
0.71%
Trailing 12 months
Next earnings
Oct 28, 2026
01
The numbers that matter
What a wheel seller checks before opening a trade.
Volatility & expected move
Implied volatility of 26% implies a one-standard-deviation move of about ±$31.03 (6.0%) by Oct 16, 2026 — a range of roughly $485.14 to $547.20.
3-month historical volatility: 39%.
Dividends
$MSFT paid $3.64 per share over the last 12 months (4 payments), a trailing yield of 0.71%.
Next ex-dividend: Nov 19, 2026
Earnings
Next report: Oct 28, 2026
The next report is after the Oct 16, 2026 expiry — a ~30-day trade avoids it.
02
Sample trades at ~30 days
One contract at the listed strike closest to 30 delta (its actual delta is shown), computed with the YieldCove calculator’s maths.
Cash-secured put
- Strike
- $500.00
- Delta (this strike)
- 0.28
- Premium
- $5.75
- Cash secured
- $50,000.00
- Credit collected
- $575.00
- Return on capital
- 1.15% · 22.1% annualised
- Breakeven
- $494.25
- Cushion to breakeven
- 4.2%
- Chance of assignment
- 32%
Premium = last trade on Sep 25, 2026 (delayed; the live bid/ask can differ).
Open in the calculatorCovered call
- Strike
- $535.00
- Delta (this strike)
- 0.30
- Premium
- $5.78
- Share cost
- $51,617.00
- Credit collected
- $578.00
- Return on capital
- 1.12% · 21.5% annualised
- If called away (this cycle)
- 4.77%
- Breakeven
- $510.39
- Chance of being called
- 27%
Assumes 100 shares bought at today’s price. Premium = last trade on Sep 25, 2026 (delayed; the live bid/ask can differ).
Open in the calculator03
How the wheel works on $MSFT
Sell a cash-secured put. At a $500.00 strike you would collect about $5.75 per share and need $50,000.00 set aside. If $MSFT stays above $500.00 until Oct 16, 2026, you keep the premium and can sell another put.
If assigned, you own 100 shares. Your effective cost is the strike minus the premium — $494.25 in the example above — not the strike itself.
Sell covered calls above your cost. A $535.00 call would pay about $5.78 per share; if $MSFT finishes above $535.00, the shares are called away and the cycle starts again.
$MSFT trades calmly by wheel standards: premiums are modest, but so are the gaps. It suits a steady income approach on shares you would hold anyway.
04
YieldCove research on $MSFT
Microsoft: cloud acceleration meets the AI capital test
Azure and Copilot are accelerating against a record contracted backlog, while the cost of building AI capacity makes cash conversion and valuation discipline the central questions.
Read the research05
Common questions
What the numbers mean — and what they leave out.
- What strike should I use to wheel $MSFT?
- Many wheel sellers start near 30 delta, about 30 days out. With $MSFT at $516.17, that was roughly a $500.00 put and a $535.00 covered call for the Oct 16, 2026 expiry at the last refresh. Pick a put strike you would genuinely be happy to own the stock at.
- How much money do I need to wheel $MSFT?
- One cash-secured put reserves 100 × the strike: about $50,000.00 at a $500.00 strike. That cash stays locked until the put expires, is closed, or you are assigned.
- Does $MSFT report earnings before the next monthly expiry?
- No — the next report (Oct 28, 2026) is after the Oct 16, 2026 expiry.
- Does $MSFT pay a dividend, and why does it matter for the wheel?
- Yes: $3.64 per share over the last 12 months (a 0.71% trailing yield). While you hold the shares between puts and calls you collect it, but an in-the-money covered call can be assigned early just before the ex-dividend date.
- Is wheeling $MSFT safe?
- No options strategy is risk-free. The wheel’s main risk is owning 100 shares after a large drop: premium cushions a fall, it does not prevent one. This page is educational and not a recommendation to trade $MSFT.
06
Keep exploring
Track this wheel free
Log the put, the assignment and the calls in one place: YieldCove tracks premium, cost basis and annualised return across the whole cycle — free.
Data: delayed Yahoo Finance prices and option trades, Nasdaq/FMP earnings calendars and the YieldCove catalyst roadmap; refreshed every few hours. As of Sep 25, 2026.
Educational content only — not financial advice or a recommendation to buy or sell $MSFT or any option. Options involve risk and are not suitable for every investor. Market data is delayed and may be incomplete. Full disclaimer
The free YieldCove newsletter
Get The Wheelhouse in your inbox
Three briefings a week — market context, practical wheel-strategy ideas and YieldCove updates. Free to read. Unsubscribe anytime.
Educational only — not financial advice.