Micron Technology Stock Is Up 150% Since April, But This Option Strategy Still Offers a 4:1 Up/Down Tradeoff

Core Viewpoint - Micro Technology (MU) is currently experiencing significant stock volatility and growth potential, with a notable increase in stock price from $60 to approximately $150, reflecting a 150% rally after a 40% decline earlier in the year [2]. Company Analysis - Micro Technology specializes in high-performance memory and storage technologies, positioning itself well for growth in the current market [2]. - The stock is trading at 23 times trailing earnings and under 11 times forward earnings estimates, indicating it is relatively undervalued compared to its peers [7]. Market Volatility - The stock has a beta of nearly 1.5 relative to the S&P 500 Index, suggesting that it has historically exhibited greater volatility, moving 15% on average when the broader market moves 10% [8]. - This volatility necessitates careful risk management strategies, such as implementing a collar to protect profits while allowing for potential upside [9].