Finally a bit of cooling off today. I have been waiting for this for 4 weeks. Hopefully it won't stop here.
But the bad news is that the VIX barely moved up so today's drop may not continue.
So what's my trade for today?
#MU (#MicronTechnology). It's a relatively stable paper so with the downwards move today I thought I try my luck with a naked put. It is possible that the price will drop further but the $55 strike is at 85% probability of profit so I am quite comfortable with it. The earnings will take place after the expiration, which means even lower risk.
MU Daily Chart
Trade Type: Short Put
Expiry: 16 Sep
IV Rank: 30.6
Cap Req: $564
Annualised Prof at Expiry: 147%
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