Micron (MU) Offering Possible 42.05% Return Over the Next 16 Calendar Days

Micron's most recent trend suggests a bullish bias. One trading opportunity on Micron is a Bull Put Spread using a strike $63.50 short put and a strike $58.50 long put offers a potential 42.05% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $63.50 by expiration. The full premium credit of $1.48 would be kept by the premium seller. The risk of $3.52 would be incurred if the stock dropped below the $58.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Micron is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Micron is bullish.

The RSI indicator is at 77.86 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Micron

Micron (MU) Stock Moves -0.22%: What You Should Know
Mon, 30 Nov 2020 22:45:10 +0000
Micron (MU) closed at $64.09 in the latest trading session, marking a -0.22% move from the prior day.

Is Micron Technology (MU) A Good Stock To Buy Now?
Mon, 30 Nov 2020 15:34:01 +0000
The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive […]

Big Names Line Up for IPOs as 2020 Draws to a Close
Fri, 27 Nov 2020 23:04:00 +0000
Airbnb, Door Dash, Roblox, and a number of other start-ups file for December initial public offerings. Some are profitable and well known; others are not. It’s an exciting way to end a pandemic year.

Zacks Market Edge Highlights: SOXX, Intel, NVIDIA, Advanced Micro Devices and Micron
Fri, 27 Nov 2020 16:13:04 +0000
Zacks Market Edge Highlights: SOXX, Intel, NVIDIA, Advanced Micro Devices and Micron

Micron: Momentum Set to Continue Into 2021, Says 5-Star Analyst
Thu, 26 Nov 2020 01:10:00 +0000
Semiconductor stocks have been on a roll in 2020. The SOX – the industry’s overall barometer index – boasts year-to-date gains of 40%, way above the 11% accrued by the S&P 500. Micron (MU), though, has made a sharp swing from red to green only recently; The stock is up by 40% over the last three months.Deutsche Bank analyst Sidney Ho puts the stock’s recent rally down to “a rotation into ‘value’ names,” with the market looking ahead to a world beyond the pandemic. With the year reaching its end point, the 5-star analyst expects the momentum to continue, and believes Micron is “well positioned for CY21.”Ho reiterates a Buy rating on MU shares while raising his price target from $60 to $70. The new figure implies a 10% upside from current levels. (To watch Ho’s track record, click here)The semiconductor industry is cyclical in nature, subject to the whims of supply and demand dynamics. While Micron has slogged its way through this year’s down cycle, the latest industry checks suggest to Ho that DRAM pricing is likely to hit an “inflection point in 1Q.”Strong Demand is on the rise in several key markets, among them data centers, smartphones, graphics (both GPU and game consoles), and cryptocurrency. Additionally, with inventory levels declining, previously weak enterprise demand is showing signs of improvement.Moreover, there is a sense the ban on key customer Huawei might be lifted. The Chinese telecom giant is a large revenue generator for Micron, but the company has been unable to sell product to Huawei since the ban came into effect in September.But that might change soon. “The potential for MU to resume shipment to Huawei has improved given several semiconductor companies have recently received export licenses from the U.S. to ship to Huawei,” Ho noted.Overall, the analyst concluded: “As the global economy starts to recover from the COVID pandemic, we view MU as a solid ‘recovery’ pick as demand drivers (data centers, 5G smartphones and gaming) accelerate,” the analyst concluded. Micron has robust support amongst Ho’s colleagues. With 17 Buys, 5 Holds and 1 Sell, the stock has a Moderate Buy consensus rating. However, the recent strong rally pushed the stock price slightly above the average price target of $62.85. (See Micron stock analysis on TipRanks)To find good ideas for chip stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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