Rocket Options Trade Update MU 09-29-20
Sell MU Call Spread for $1.32 credit
Sell Oct 2nd $51 call
Buy Oct 2nd $55 call
Collect a credit of about $1.31. Your max risk is $269 per contract and your max profit is the $131 you collect. You're risking just over $2 to make $1 in profit.
Our breakeven for this trade is $52.31. MU is trading at $50.86. We achieve a max profit if MU stays under $51 as of Friday's close.
MU reports after the bell tonight and has a $3.37 move priced into the options for a $50.86 stock - that's a 6.62% move.
I expect MU to trade flat to lower on their numbers tonight. We will look to absorb the premium priced into the options from $51 - $55.
Buy Oct 2nd $55 call
Collect a credit of about $1.31. Your max risk is $269 per contract and your max profit is the $131 you collect. You're risking just over $2 to make $1 in profit.
Our breakeven for this trade is $52.31. MU is trading at $50.86. We achieve a max profit if MU stays under $51 as of Friday's close.
MU reports after the bell tonight and has a $3.37 move priced into the options for a $50.86 stock - that's a 6.62% move.
I expect MU to trade flat to lower on their numbers tonight. We will look to absorb the premium priced into the options from $51 - $55.
