Technology
MU
Micron Technology Inc.
Cyclical premium from Micron (MU) with covered calls and cash secured puts. Memory chip exposure with AI tailwinds.
Monthly Premium2.5-4.0%
Annualized Return30-48%
Stock Price$95-120
IV RankHigh (50-70)
Options LiquidityExcellent
Dividend Yield0.4%
Why MU for Covered Calls & Cash Secured Puts?
MU offers strong premium due to semiconductor cyclicality and AI memory demand. HBM (high-bandwidth memory) for AI is a major growth driver.
Example Covered Call Trade
MUCovered Call
Strike Price$120 (10% OTM)
Expiration30 days
Premium$4.00 per share
Return If Flat3.7% ($400)
Return If Called13.7% ($1,500)
Keep Probability68% keep shares
Recommended Strategy for MU
Sell calls 8-12% OTM during upcycles. Be cautious during downcycles - may want to avoid the wheel.
Risks to Consider
- Highly cyclical industry
- China market restrictions
- Oversupply risks
- Capital intensive
Analyze MU Covered Calls Now
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