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Options Corner: MU Example Trade
Micron TechnologyMicron Technology(US:MU) Youtubeยท2025-09-23 13:36

Core Insights - Micron's stock has experienced significant growth, hitting an all-time high and rallying 81% over the past 52 weeks, with analysts projecting a Q4 adjusted EPS of 282 on revenue exceeding 11 billion, indicating nearly 140% year-over-year EPS growth [1][2] Group 1: Company Performance - Micron has outperformed the broader market, increasing by 76% in the past year compared to a 17% rise in the broader market [2] - In the context of the chip sector, Micron is outperforming competitors like Intel and AMD, which focus on CPUs and GPUs, while Micron specializes in storage solutions [3] Group 2: Technical Analysis - Micron's stock has shown a series of ascending lows, with consistent resistance around 128, and a recent breakout observed [4] - Key levels to watch include a low point at 147.61 and a high point at 170.45, with the RSI indicating overbought conditions but still showing momentum [5][6] Group 3: Options Strategy - The options market is pricing in a potential 10% move in either direction, reflecting elevated implied volatility due to Micron's recent performance [8][9] - A proposed options strategy involves selling an out-of-the-money put vertical, with a potential credit of approximately $140 and a risk of about $360, providing a break-even point around 153.60, which is about 7.5% below the current share price [10][12] - The probability of the short 155 strike finishing out of the money at expiration is estimated at 68%, favoring a neutral to bullish stance [14]