MU
Micron Technology
Rating 3.4 / 5 Recommendation Hold

Credit put spread analysis · · Moderate setup

IV Rank
100
Implied volatility percentile
Trend
0.89
Long-term trend score
Safety
7/9
Quality checks passed
Drop
-6.0%
Day 2 of drop
Reversal
Hammer
Day 4
1Y Change
109.1%
Trailing 12 months
Earnings
Clear
No event in window

AI analysis

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.

Trade history on MU

Every live credit put spread we've opened on this ticker — what was traded, when, and how it ended.

OpenedStrikes (S/B)ExpirationCreditP/LOutcome
Mar 5, 2026 $380.00/$360.00 Apr 9, 2026 $4.50 $3.65 Win · price_increase

Earlier analyses

  1. 3.2/5 Hold

    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…

  2. 3.5/5 Open trade

    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,…

  3. 3.8/5 Open trade

    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…

  4. 2.5/5 Pass

    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…

  5. 4.2/5 Hold

    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…