MU trade ideas
MU Island topMU has formed an island top the price may come to a reversal at the 1 fib level due to this formation. Maybe a rounded top? Possibly my favourite chart pattern so far.
MU potential reversalMU price surged before earning with a lot of volumes. Now it has a higher probability to pull back. Plus good news before the earning is priced in. Option buyers taking MU bet off the table due to the loss of IV.
I like to make this trade by selling calls or sell stocks. Don't go against the IV.
When you place a trade, remember this:
1. Always look for a 100% loss on options or 10% loss on stocks. If you think the commission is killing you, don't trade. (Canadian broker sucks)
2. You must buy or sell options that have more than 30 days to expire. If you don't have enough money or you are taking too big of your position, make it a cover call/put.
Have fun out there.
WallaceW
MU continuation play good R:RChart is pretty clear with stop location and sellers are waiting above, so that is where you pull stops tighter etc. Happy trading!
MU before EarningsPhenomenal technicals for MU right before earnings release tomorrow. I used to trade this stock in the past, always loved its performance.
Stock is consistently creating higher lows and higher highs. 10 out of 10 indicators check out bullish. Stock is likely to break the ATH once again post-ER.
Before the ER it would be great if MU would close the gap created yesterday to allow for smooth sailing through the upper trend line seen on the 'monthly' below.
$Mu Trade to topside of channel with upgradeEntry level $52.91 = Target price $54.73 = Stop loss $52.20
Susquehanna upgrades Micron to Positive with bottom seen approaching. As previously reported, Susquehanna analyst Medhi Hosseini upgraded Micron to Positive from Neutral with a price target of $85, up from $45. While the analyst is reducing his FY20 EPS estimate to account for a downtick in near-term average selling price trends, Hosseini believes February guidance should mark the bottom and sees higher odds for a sustainable average selling price improvement in both DRAM and NAND starting in the May quarter and sustaining into the second half of 2020. In light of this view, Hosseini raised his FY21 EPS estimate and now projects earnings power in the $8-$10 per share range for Micron. Read more at: thefly.com
thefly.com
MU - DAILY CHARTHi, today we are going to talk about Micron Technology and its current landscape.
Micron Technology is poised to receive increasing attention from the market as relevant events are taking place. The company reports its earnings on Wednesday after the market had closed. With a rough year, this report could be a Micron Technology chance to boost its positive momentum. Also, in previous quarters, the company managed to beat estimates, despite the effects of the ongoing trade war between China and the U.S, that has been left investors apprehensive about its developments. Now that a perspective over a tariff truce looks more realistic, as negotiations seem to progress, Micron should receive another boost coming from this favorable geopolitical environment.
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THE WEEK AHEAD: FDX, MU, NKE EARNINGS; CHWY, /NG, VIXEARNINGS:
FDX (57/37): Tuesday, After Market Close.
MU (23/46): Wednesday, After Market Close.
NKE (24/25): Thursday, After Market Close.
Pictured here is an MU January 17th 46/57.5 short strangle paying 1.53 (.76 at 50% max) with 1 standard deviation break evens and a delta/theta metrics of .32/5.34.
Alternatively: a defined risk play collecting one-third the width of the wings: the January 17th 42/47/55/60, paying 1.69.
Neither FDX nor NKE are paying as well premium-wise relative to the cost of their shares, but the FDX 150/180 18 delta put/21 delta call short strangle in the January cycle is paying 3.88; the NKE 90/105 14 delta put/18 delta call short strangle, 1.15.
Alternative defined risk plays: the FDX January 17th 145/150/180/185 iron condor, 1.50 credit (not quite one-third the width of the wings, but you have to deal with some lack of granularity in the strikes with five-wides); the NKE January 17th 85/95/100/110 "forced goofy" iron condor, 3.30 credit (one-third the width, but a "forced goofy,"* again due to lack of strike granularity).
CHWY (--/50) gets an honorable mention due to lockup expiration on Wednesday. With it finishing on Friday above the $22 initial public offering price and approximately 87% of float subject to lockup, it could make for an interesting premium selling play and/or directional shot, particularly since 30-day remains high after earnings.
EXCHANGE-TRADED FUNDS:
TLT (31/12)
EEM (28/16)
FXI (19/18)
SMH (15/25)
USO (14/29)
Expiries in Which At-the-Money Short Straddle Pays Greater than 10% of the Value of the Underlying:
TLT: January '21
EEM: June
FXI: June
SMH: May
USO: February
BROAD MARKET:
SPY (7/12)
IWM (0/15)
QQQ (0/15)
Expiries in which the at-the-money short straddle pays greater than 10% of the underlying are all out in September. Ugh. No bueno.
FUTURES:
/NG (58/57)
/ZS (36/16)
/ZC (25/21)
/6C (23/5)
/6B (22/11)
With /NG 30-day at 57 and trading at a seasonal low, this may be a second opportunity to take a dip at a bullish assumption shot, assuming peak seasonality in January or February.
VIX/VIX DERIVATIVES:
VIX closed Friday at 12.63, with the /VX futures contracts trading at 15.22 in January, 16.70 in February, 17.07 in March, and 17.60 in April. Consequently, term structure trades remain viable for the February, March, and April, generally using spreads with a break even at or near where the futures contract is currently trading (e.g., VIX February 19th 16/18 short call vertical, .65, break even of 16.65 versus February /VX at 16.70).
* -- A "forced goofy." Strike selection is "forced" to get one-third of the width in credit, "goofy" because forcing the short option strikes leads to bigger risk than you might ordinarily want to devote to the play. There is nothing particularly wrong with a "forced goofy," as long as you understand that it's a risk 6.70/reward 3.30 play versus your usual play which might be risk 3.33/reward 1.67 play, for example.
$MU Betting on a beat for MicronTarget price at Fibonacci .786 @ $56.86
Entry level to be determined by market activity tomorrow.
P/E ratio 9.8.
Micron Technology, Inc. engages in the provision of innovative memory and storage solutions. It operates through the following segments: Compute and Networking Business Unit (CNBU); Mobile Business Unit (MBU); Storage Business Unit (SBU); and Embedded Business Unit (EBU). The Compute and Networking Business Unit segment includes memory products sold into cloud server, enterprise, client, graphics, and networking markets. The Mobile Business Unit segment offers memory products sold into smartphone, and other mobile-device markets. The Storage Business Unit segment comprises of SSDs and component-level solutions sold into enterprise and cloud, client, and consumer solid-state drive (SSD) markets, other discrete storage products sold in component and wafer forms to the removable storage markets, and sales of 3D XPoint memory. The Embedded Business Unit segment consists of memory and storage products sold into automotive, industrial, and consumer markets. The company was founded by Ward D. Parkinson, Joseph L. Parkinson, Dennis Wilson, and Doug Pitman in October 1978 and is headquartered in Boise, ID.
i28. Micron TechnologyBeta-R:Journal. Risk Management: Compound .Level : PA . Time: Short-term - Intermediate . This is just my view follow if it aligns with yours. Ideas are not repeated rather updated.Worry about risk only.
MIcron, trade the channelEntry level $46.33 above mid channel resistance.
Target price at top of the channel $47.84, if the channel breaks let it rip.
stop loss $45.93
MU Forms Symmetrical TriangleA short-term triangle is underway for MU as it hits heavy resistance from previous monthly highs. The candlestick patterns are indecisive.
Micron still needs timeThey need some more time and news before they truly go crazy with their 3d Memory
Triangle crackedIf market falls from here this is an excellent short setup. please don't message me about how charts don't work. Triangle apex was gold
MU to make a big move up in the coming weeks (60%+)MU has hit some sort of brick wall. The most probable path appears to be a climb up the new found support line (orange). Multiple confirmations of this path, rather than say a big drop, the most significant of which is the divergent volume. You can see the areas of the chart which may be fractaled from pattern matching the RSI and MACD movements. I expect the initial jump to be fast and furious, followed by a more reasonable climb, until it falls outside of the ascending trendline (at around the 2nd target line). The TA generated targets shown seem reasonable from a fundamental standpoint, with a number of different analysts upgrading their assessment recently. 2020 Q1 Earnings on Dec 12, to give you a sense of relative timing here. I think the initial jump might happen prior to the earnings call, with whatever good news that's released already having been priced in, but that's a matter of conjecture - and really dependent on how the broader market moves between now and then. There's enough runway here for the initial big jump to happen after the 12th, and the price may be relatively flat prior to that, so I'd take a conservative approach with timing if you're taking the options route.
