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Why MU Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Micron Technology Inc (Technology) · $974.33 ·
Analysis generated Aug 21, 2026 ·
Data as of market close Aug 21
Quick Take
MU is trading at $974.33 with RSI at 59 (neutral territory). Options IV is at 67% — 34% below its 30-day average of 102%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
59
IV Today
67.1%
IV vs 30d Avg
-34%
MACD
bullish
ADX
15
MFI
65
The Setup
MU Covered Call
LONG STOCK
100 shares @ $974.33
SHORT CALL
$1050 Oct '26 · $80.0/sh
Net Cost
$89,433
Max Profit
+$15,567
Break-even
$894.33
Projected P&L at Target
+$15,567
(17.4%)
P&L at Expiry
P&L Scenarios
What happens at different MU prices by expiry:
| MU Price | Today | Sep 8 | Sep 27 | Oct 16 (exp) |
|---|---|---|---|---|
| $779 (-20%) | -$13,544 | -$12,565 | -$11,714 | -$11,487 |
| $828 (-15%) | -$9,751 | -$8,471 | -$7,167 | -$6,615 |
| $877 (-10%) | -$6,278 | -$4,708 | -$2,905 | -$1,743 |
| $926 (-5%) | -$3,144 | -$1,322 | +$960 | +$3,128 |
| $955 (-2%) | -$1,428 | +$520 | +$3,047 | +$6,051 |
| $974 (0%) ← now | -$353 | +$1,666 | +$4,334 | +$8,000 |
| $994 (+2%) | +$668 | +$2,747 | +$5,532 | +$9,949 |
| $1023 (+5%) | +$2,100 | +$4,249 | +$7,163 | +$12,872 |
| $1050 (+8%) ← target | +$3,317 | +$5,508 | +$8,489 | +$15,567 |
| $1072 (+10%) | +$4,230 | +$6,439 | +$9,440 | +$15,567 |
| $1120 (+15%) | +$6,060 | +$8,265 | +$11,202 | +$15,567 |
| $1169 (+20%) | +$7,617 | +$9,761 | +$12,514 | +$15,567 |
Why This Strategy, Why Now
- RSI at 59 — neutral-bullish
- IV -34% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 15 — range-bound, perfect for selling calls
- 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.