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Quantchabot has detected a promising Bull Call Spread trade opportunity for MICRON TECHNOLOGY (MU) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MU was recently trading at $95.65 and has an implied volatility of 38.45% for this period. Based on an analysis of the options available for MU expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $95.67-$113.67 at expiration. In this scenario, the average linear return for the trade would be 86.57%.
52 week high: MICRON TECHNOLOGY recently reached a new 52-week high at $96.10. MU had traded in the range $41.19-$95.75 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if MU maintains its current direction and does not revert back to pricing on the bearish side of $95.65 on 18-Jun-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if MICRON TECHNOLOGY closes at or above $95.00 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 51.63% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.