DailyPlay – Opening Trade (MU) – May 30, 2025

MU Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Micron Technology (MU) presents a compelling bullish opportunity as it continues to benefit from favorable macro trends in AI-driven memory demand and an improving semiconductor cycle. With earnings scheduled for June 25, 2025, we view the pre-earnings window as an ideal setup for a defined-risk, high-probability options play. The company has recently broken above key technical levels, signaling strong bullish momentum ahead of the catalyst. By selecting an options expiration date that precedes the earnings event, we aim to capitalize on the current trend while avoiding binary risk tied to the report.

Technical Analysis
MU has recently broken out of a multi-month consolidation zone, surging above its 200-day moving average near $92, now establishing that level as new support. The stock has reclaimed both its 20-day and 50-day moving averages, which are now trending upward and aligned in a bullish stack. Relative strength is notable, with MU outperforming the S&P 500 and the broader semiconductor sector. With the stock trading near $96.80, its momentum remains strong, and the path toward the $100 upside target appears technically achievable over time.

Fundamental Analysis
Micron trades at a considerable valuation discount while demonstrating superior growth and profitability metrics compared to its peers. This valuation gap combined with strong forward growth expectations reinforces the bullish case, particularly ahead of a potentially upbeat earnings report.

• Forward PE Ratio: 8.58x vs. Industry Median 22.84x
• Expected EPS Growth: 96.81% vs. Industry Median 16.50%
• Expected Revenue Growth: 22.31% vs. Industry Median 10.46%
• Net Margins: 14.92% vs. Industry Median 10.43%

Options Trade
Sell to open the MU June 20, 2025, 96/86 put vertical for a net credit of $2.96. This bull put spread profits if MU stays above $96 through expiration, offering a maximum reward of $296 with a defined risk of $704. With just 22 days until expiration and earnings scheduled for June 25, after the trade expires, this setup expresses a bullish view while avoiding earnings risk. The structure offers a high-probability trade setup with a decent risk/reward.

MU – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 MU June 20 $96/$86 Put Vertical Spreads @ $2.96 Credit per Contract.

Total Risk: This trade has a max risk of $2,112 (3 Contracts x $704) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $704 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to break out above its current trading range.

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 87

Stop Loss: @ $5.92 (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 Thursday ‘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