YOLO MSFT 0509 $432.5P – 5x or Zero Play (P/E 35x + China Risk + Double Top = Perfect Storm?
I bought 14k worth of last minute Microsoft May 9th $432.50 puts today - fingers crossed for a 5x return! Do you think we might see a Google-like crash?
Reasons:
1) P/E looks ridiculously high (35x vs 10-year average of 25x) - feels like the growth premium is being absorbed. All it takes is one earnings miss to collapse momentum
2) Core business slowdown: Azure growth continues to decline (now \~25% vs. 30%+), Windows is being hit hard by weak PC sales, and Office 365 is basically running out of capacity
3) China risk - Huawei is about to launch a new OS in China (5% revenue share will no longer exist), plus tariffs. Oh, and Apple is done too, lol
4) The chart looks terrible: Double top at 435/433, neckline at 415 → If broken, it will soon drop to 395. Resistance is 430-435
Anyway, this is my complaint - I am all in on this trade. Either it goes to zero or they print money. Did you guys see Google crash today? I am so excited! Let me know what you think