I am recommending we sell calls on our uncovered Micron Technology (MU) shares. Note that this trade is only for members who already own shares of MU uncovered from a previous trade.
I am also recommending another bull put spread to reduce our net debit on the position. You can enter today’s trade even if you were not in the previous one. Just be aware that I will be managing and tracking it based on the ongoing position.
And if you are new to spread trading, please watch my Bull Put Spread Coaching Session before entering the trade.
MU Uncovered Shares
Current Stock Price: $72.75
Cost Basis: $77.65
Action: Sell to open the MU Apr Week Four (4/22) 75 Call for around $1.24, but adjust as needed to sell a call today
New Cost Basis: $76.41
Net Debit: $2.62
- Sell to open the MU Apr Week Five (4/29) 65 Put for around $0.62
- Buy to open the MU Apr Week Five (4/29) 60 Put for around $0.20
- Set initial credit limit at $0.42, but adjust as needed to enter today
New Net Debit: $2.20