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Why MU Is an Excellent Covered Call Candidate Right Now Strong · 80/100
Micron Technology Inc (Technology) · $1144.10 ·
Analysis generated Jun 18, 2026 ·
Data as of market close Jun 18
Quick Take
MU is trading at $1144.10 with RSI at 66 (neutral territory). Options IV is at 87% — 24% below its 30-day average of 115%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
66
IV Today
86.9%
IV vs 30d Avg
-24%
MACD
bullish
ADX
29
MFI
52
The Setup
MU Covered Call
LONG STOCK
100 shares @ $1144.1
SHORT CALL
$1240 Aug '26 · $156.95/sh
Net Cost
$98,715
Max Profit
+$25,285
Break-even
$987.15
Projected P&L at Target
+$25,285
(25.6%)
P&L at Expiry
P&L Scenarios
What happens at different MU prices by expiry:
| MU Price | Today | Jul 9 | Jul 30 | Aug 21 (exp) |
|---|---|---|---|---|
| $915 (-20%) | -$11,883 | -$9,949 | -$8,060 | -$7,187 |
| $972 (-15%) | -$7,869 | -$5,563 | -$3,077 | -$1,467 |
| $1030 (-10%) | -$4,181 | -$1,538 | +$1,532 | +$4,254 |
| $1087 (-5%) | -$820 | +$2,110 | +$5,697 | +$9,974 |
| $1121 (-2%) | +$1,042 | +$4,116 | +$7,964 | +$13,407 |
| $1144 (0%) ← now | +$2,221 | +$5,377 | +$9,374 | +$15,695 |
| $1167 (+2%) | +$3,350 | +$6,578 | +$10,702 | +$17,983 |
| $1201 (+5%) | +$4,954 | +$8,271 | +$12,543 | +$21,416 |
| $1240 (+8%) ← target | +$6,636 | +$10,025 | +$14,403 | +$25,285 |
| $1259 (+10%) | +$7,396 | +$10,808 | +$15,214 | +$25,285 |
| $1316 (+15%) | +$9,567 | +$13,012 | +$17,418 | +$25,285 |
| $1373 (+20%) | +$11,488 | +$14,911 | +$19,200 | +$25,285 |
Why This Strategy, Why Now
- RSI at 66 — extended, ideal for selling calls
- IV -24% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 29 — moderate trend
- No squeeze — no imminent breakout
Key Risks
MU has bullish momentum (MACD). If a positive catalyst emerges (earnings beat, product launch), the stock could gap past your strike. Consider rolling the call up if MU approaches the strike before expiry.
ADX at 29 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.