Micron Technology (MU) is falling ahead of tomorrow’s earnings announcement. I am recommending we roll our call out one week and use the cash to help buy a protective put to hedge against a post-earnings sell-off.
Current Stock Price: $56.42
Cost Basis: $68.79/$72.24
- Buy to close the MU Jul Week One (7/1) 60 Call for around $0.69
- Sell to open the MU Jul Week Two (7/8) 60 Call for around $1
- Set initial credit limit at $0.31, but adjust as needed to roll today
- Buy to open the MU Jul Week One (7/1) 52 Put for around $0.47
New Cost Basis: $68.95/$72.40