Subject: Micron Technology (MU) At Double-Barreled Support

Dear Friend,

Today we bring you a brand new Trade of the Week! Each week we share a new trade idea directly from our trading team.

Terry

July 12, 2021

Week 654

Micron Technology (MU) At Double-Barreled Support

Flash memory and semiconductor producer Micron Technology (MU) reported Q3 earnings last week that easily topped Street estimates. Earnings hit $1.88 per share, more than double from a year earlier and 10% greater than the consensus analyst estimate. Revenues jumped 36% from the year before and beat the estimate by $160 million. Moreover, MU expects further gains in Q4 that are well above analysts’ projections. The reaction from the Street was modestly positive, though there were some concerns over MU’s cost structure.

Bitcoin is DEAD! Because there's a NEW way to trade. It can pay far more than cryptos, Trades can cost as little as 1¢ and Warren Buffett made $12 billion with the idea behind this technique. One of these odd trades even shot up 183% in one day! Again - this is NOT crypto trading.

Here's the full scoop on this weird way to trade. BETTER THAN BITCOIN.

The stock’s post-earnings price move was anything but positive. The shares fell 5.7% the day after the report and continued lower, bottoming at a 10.6% decline in Thursday’s trading. That low brought the stock to its 200-day moving average, which hasn’t been tested since last October. Friday was an encouraging day for MU, as the stock bounced 2% higher to log its best day since earnings. The 200-day sits at the 75 level, which is where we are placing the short put of our bullish credit spread as we look for trendline support to hold. Note also that the 75-76 area has provided strong support several times throughout 2021.

If you agree that MU will stay above its 200-day moving average, consider the following trade that relies on the stock remaining above 75 through expiration in six weeks.

Buy to Open MU 20Aug 72.5 put (MU210820P72.5)
Sell to Open MU 20Aug 75 put (MU210820P75) for a credit of $0.60 (selling a vertical)

This credit is $0.04 less than the mid-point of the option spread when MU was trading at $78.74. Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will be only $1.30 per spread. Each spread would then yield $58.70. This trade reduces your buying power by $250 and makes your net investment $191.30 ($250 – $58.70). If MU closes above $75 on August 20, both options will expire worthless and your return on the spread would be 31% ($58.70 / $191.30)..

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

New Investing eBook - Ultimate Guide to Real Estate Stocks.

Expand your portfolio by adding Real Estate Stocks and REITs that have outperformed the S&P 500 since the 1970s. Learn about these overlooked stocks and add high performance and stability to your portfolio.

Download the eBook FREE

Any questions? Email Colin@terrystips.com

You can see every trade made in the actual option portfolios conducted at Terry’s Tips and learn all about the wonderful world of options by subscribing here. Why wait any longer to make this important investment in yourself?

I look forward to having you on board, and to prospering with you.

Terry

AWrite this Number Down: 0001139685

As veteran investor Matt Milner says right here...

This code is the KEY to unlocking almost unbelievable investment gains.

It's not an options symbol, bond number, or any sort of crypto investment.

But 10-digit codes like the one above could change your life.

Click here now to see how

Testimonial of the Week

I’ve been involved with investing equities, options and futures for most of my life and I’m seventy years old. You are to be congratulated on your method, expertise and diligence. I plan to add to my account and the number of portfolios.

~ Karl

Thank you again for being a part of the Terry's Tips newsletter. If you are interested in signing up as an Insider, visit Terry's Tips today for details.

Sincerely,

Dr. Terry Allen
Terry's Tips

Subscribe

Subject: Micron Technology (MU) At Double-Barreled Support

Micron Technology (MU) At Double-Barreled Support