Credit put spread analysis · · Moderate setup
Trade history on MU
Every live credit put spread we've opened on this ticker — what was traded, when, and how it ended.
| Opened | Strikes (S/B) | Expiration | Credit | P/L | Outcome |
|---|---|---|---|---|---|
| Mar 5, 2026 | $380.00/$360.00 | Apr 9, 2026 | $4.50 | $3.65 | Win · price_increase |
Earlier analyses
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The setup presents a mixed picture. The stock (MU) has experienced a sharp -6.62% drop, which often creates opportunities for put sellers as volatility spikes. However, the context is challenging. The stock is up 81.9% o…
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Analysis for MU: The stock is in a powerful uptrend (91% trend score, up 82% in 2 months) but has high implied volatility (100%) and a low safety score (8/9). The -6.62% drop provides a potential entry for a put spread,…
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Analyzing MU at $681.54 after a sharp -6.62% drop. The stock is up 81.9% over two months, indicating a powerful uptrend (Trend: 91%), but this pullback presents a potential entry. The high IV of 100% is attractive for se…
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The -6.62% drop in MU presents a tempting entry point, but the overall context argues strongly for caution. The stock is up 81.9% over two months, indicating an extremely overextended uptrend that is now showing signific…
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The stock has dropped significantly, and the Safety score is still relatively high, indicating a decent opportunity for a credit put spread. However, there is no reversal signal yet, so waiting a bit longer might be bene…
AI analysis
Options Trading Expert · May 20, 2026
The AI's notes below mention opening a position, but the rating (3.4/5) sits below our public-display threshold of 3.5/5, so this setup is marked Hold rather than as a tradable idea.
Analyzing MU after a sharp -5. 95% drop to $762. 10.
The stock is in a powerful uptrend, up 109% over two months with a strong trend score of 89%. The hammer reversal candlestick pattern on the daily chart suggests potential short-term support and a buying opportunity after the pullback, which aligns with selling a put spread. However, significant concerns temper the setup.
The implied volatility (IV) is extremely high at 100%, which inflates option premiums and is attractive for credit sellers, but it also indicates massive expected price swings and elevated risk. The safety score is a moderate 7 out of 9. The primary risk is that this drop could be the start of a deeper correction within a parabolic move, and high IV can lead to painful mark-to-market volatility even if the thesis is ultimately correct.
Given the moderately aggressive temperament and the desire for a reasonable setup, a defined-risk credit put spread is appropriate here to capitalize on the high premium and the hammer signal, but position size must be controlled. We will target a strike 5-7% out-of-the-money for the short put, which provides a decent buffer while still capturing solid credit in this high-vol environment. The calculated strikes and credit meet our minimum risk/reward threshold.