Core Viewpoint - Micron Technology (MU) stock is identified as a bearish candidate due to being 96% above its 200-day moving average, suggesting a potential pullback from overbought levels [1] Bear Put Spread Strategy - A Bear Put spread is a bearish options strategy that profits from a rise in implied volatility, with limited maximum risk equal to the premium paid and capped maximum potential profit [2] - To establish a Bear Put spread, an out-of-the-money put is purchased while another further out-of-the-money put is sold [3] Specific Trade Example - The proposed trade involves buying a February 20th put with a strike price of $270 and selling a $240 put, trading at approximately $10.10, resulting in a total premium of $1,010 and a maximum profit of $1,990 [4] - This trade represents a potential return of 197.03% on risk if MU stock falls below $240 by the expiration date [4] Risk and Breakeven Analysis - If Micron stock closes above $270 at expiration, the total loss would be the full premium of $1,010 [5] - The breakeven point for the Bear Put spread is calculated at $259.90, derived from the strike price minus the option premium [6] Company Overview - Micron Technology, through its brands like Crucial and Ballistix, manufactures high-performance memory and storage technologies, including DRAM, NAND flash, NOR Flash, and 3D XPoint memory, utilized in various computing and mobile products [9] Technical Outlook - The Barchart Technical Opinion rating for Micron is a 100% Buy, indicating a strong short-term outlook for maintaining the current upward trend [7] - Long-term indicators also support the continuation of this trend [8]

Group 1 - Adobe Systems (ADBE) stock has been identified as a bearish candidate after breaking below the 50-day moving average [1] - The Barchart Technical Opinion rating for Adobe is 88% Sell, indicating a strengthening short-term outlook for maintaining the current bearish trend [13] - Adobe operates through three segments, with the Digital Media solutions segment enabling businesses to create and deliver content across various media [14][15] Group 2 - A Bear Put spread trade is being considered, which assumes that Adobe's stock will continue to decline [4] - The proposed Bear Put spread involves buying a December 19 put with a strike price of $285 and selling a $280 put, trading for around $1.50 [8] - The maximum profit for this trade is $350, representing a 233.33% return on risk if Adobe's stock falls below $280 [9]