Micron Tech (MU) – Bearish Options Action Earnings Trade
On Friday's Options Action, the crew analyzed the performance of the semiconductor sector. Semis have reached it's dot-com peak while underperforming the technology sector over the past few months. Micron reports earnings next week and recently failed to make a new high while underperforming the tech sector. Coupled with Micron's sell-off after last quarter's earnings beat suggests another move lower on earnings. Expecting MU to trade lower, Michael Khouw suggests buying a July 57.5/50 Put Vertical for a $2.70 Debit. As of Friday's close, this option is trading at $2.42.
We've structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action's video by clicking on the following link: MU Options Action
View this OptionsPlay on MU - app.optionsplay.com/
Cost: $242
Max Reward: $508
Max Risk: $242
POP: 39.75%
Breakeven: $55.08
Days to Expiry: 32
We've structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action's video by clicking on the following link: MU Options Action
View this OptionsPlay on MU - app.optionsplay.com/
Cost: $242
Max Reward: $508
Max Risk: $242
POP: 39.75%
Breakeven: $55.08
Days to Expiry: 32