If MSFT is trading above $27 on April 19th, I will get to keep the full premium of $50.01 as profit. This would represent a 1.85% return over the length of the option which is annualized to a 12.52% return.
If MSFT is trading below $27 on April 19th, I will be forced to purchase 100 shares of MSFT at $27 each. However since I received an option premium in exchange for the right to the shares, we have to account for that in the cost basis. My cost basis on execution after accounting for commission and the premium will come out to $26.50. As I mentioned above, that's a 14% discount to my fair value calculation. Based on the current annual dividend of $0.92, this would be a 3.47% YOC.
Unfortunately, thanks to the late day sell off I could have received an extra 2% in annualized premium return had I sold the put closer to the end of the day. But I'm happy with the two ways this option can play out. This leaves me a little lighter on cash than I'd like, but if the markets give us a great opportunity, then I'll cash flow some extra money to my brokerage account earlier than expected.
I've updated my option summary page to reflect the latest trade.