Quantchabot has detected a promising Covered Put trade opportunity for MICRON TECHNOLOGY (MU) for the 16-Jun-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MU was recently trading at $62.47 and has an implied volatility of 43.49% for this period. Based on an analysis of the options available for MU expiring on 16-Jun-2023, there is a 31.53% likelihood that the underlying will close within the analyzed range of $42.74-$62.47 at expiration. In this scenario, the average linear return for the trade would be 177.01%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, MICRON TECHNOLOGY was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.
Trade approach: The recent sentiment change in MU on StockTwits appears to be moderately negative, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bearish strategy could prove effective if the sentiment ultimately turns out to drive trading.
Upside potential: Using this bearish strategy, the trade would be profitable if MICRON TECHNOLOGY closed at or below $93.27 on 16-Jun-2023. Based on our analysis, there is a 82.18% 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.