DailyPlay – Opening Trade (MU) – December 04, 2025

MU Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Micron Technology (MU) remains a compelling bullish opportunity as the company continues to benefit from structural demand strength in AI-driven memory and storage markets. With earnings scheduled for Wednesday, December 17th after the close, the setup favors continued momentum as investors position for potentially strong guidance tied to improving DRAM/NAND pricing and accelerating data-center demand. The stock’s recent performance underscores a market increasingly willing to reward high-quality semiconductor names with exposure to AI infrastructure, supporting a constructive medium-term outlook.

Technical Analysis
After pushing through its earlier consolidation zone, MU has sustained notable outperformance relative to the broader semiconductor space and the overall market. Price remains firmly anchored above the 50-day and 200-day moving averages, while the 20-day moving average is acting as a resistance level. The stock’s strong recovery from its recent dip improves the setup, and a move back through the $244.37 short-term high would reinforce momentum toward the $250 objective.

Fundamental Analysis
Micron screens as substantially undervalued relative to peers despite materially better growth and margin expectations. The company is entering a favorable phase of the memory cycle supported by strengthening pricing, expanding AI-related demand, and disciplined supply management across the industry. MU’s forward valuation reflects skepticism that appears misaligned with its accelerating fundamental trajectory, especially given the company’s leadership position in high-performance memory essential to AI compute architectures.

• Forward PE Ratio: 13.86x vs. Industry Median 26.41x
• Expected EPS Growth: 37.98% vs. Industry Median 18.61%
• Expected Revenue Growth: 21.38% vs. Industry Median 10.60%
• Net Margins: 22.85% vs. Industry Median 14.16%

Options Trade
A favorable way to express a bullish stance ahead of the December 17 earnings event is the MU Jan 2, 2026 230/220 Put Vertical spread, selling the 230 strike put and buying the 220 strike put for a net credit of approximately $4.75, offering a $475 maximum reward against a defined $525 maximum risk. This structure benefits from MU holding above the $230 level—consistent with current technical support—and provides a cushion below spot, allowing the trade to profit even if the stock pulls back modestly after earnings. The spread offers attractive risk-adjusted income while maintaining directionally bullish exposure with limited downside.

MU – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 MU Jan 02 $230/$220 Put Vertical Spreads @ $4.75 Credit per Contract.

Total Risk: This trade has a max risk of $1,575 (3 Contracts x $525) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $525 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 10/10

OptionsPlay Score: 101

Stop Loss: @ $9.50 (100% loss to value of premium)

View MU Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Wednesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View MU Trade