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Earning Trade - Micron (MU)

|About: Micron Technology, Inc. (MU)
Summary

Micron will announce its earning after the market close on March 20th, 2019.

I don't have any directional bias heading into earning.

I will sell a strangle for neutral directional trade.

Micron will announce its earning after the market close. The IV rank is only slightly elevated (~35) and since I don't really have any directional bias on this, I have decided to sell strangle heading into the earning:

  • Sold MAR 29 35 Put for $0.30 per contract
  • Sold MAR 22 46 Call for $0.16 per contract
  • Total premium received is $0.46 per contract
  • Margin required is $452.60 per contract
  • Percentage expected return is ~ 10% in 9 days or ~ 407% annualized

Disclosure: I am/we are short MU (Strangle).

Additional disclosure: I/we have strangle positions in MU heading into earning after the market close on 03/20/2019. I wrote this article myself, and it expresses my own opinions. It is for informational purposes only and is not intended to be used as a complete source of information to initiate any options selling strategy.