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MU Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 60/100
Micron Technology Inc (Technology) · $823.03 ·
Analysis generated Jul 31, 2026 ·
Data as of market close Jul 31
Quick Take
MU is trading at $823.03 with RSI at 45 (neutral territory). Options IV is at 118% — 3% above its 30-day average of 115%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
45
IV Today
118.0%
IV vs 30d Avg
3%
MACD
bearish
ADX
21
MFI
45
The Setup
MU Covered Call
LONG STOCK
100 shares @ $823.03
SHORT CALL
$890 Sep '26 · $82.0/sh
Net Cost
$74,103
Max Profit
+$14,897
Break-even
$741.03
Projected P&L at Target
+$14,897
(20.1%)
P&L at Expiry
P&L Scenarios
What happens at different MU prices by expiry:
| MU Price | Today | Aug 17 | Sep 2 | Sep 18 (exp) |
|---|---|---|---|---|
| $658 (-20%) | -$11,602 | -$10,207 | -$8,847 | -$8,261 |
| $700 (-15%) | -$8,708 | -$7,043 | -$5,244 | -$4,145 |
| $741 (-10%) | -$6,050 | -$4,141 | -$1,911 | -$30 |
| $782 (-5%) | -$3,629 | -$1,513 | +$1,098 | +$4,085 |
| $807 (-2%) | -$2,288 | -$69 | +$2,734 | +$6,554 |
| $823 (0%) ← now | -$1,439 | +$839 | +$3,750 | +$8,200 |
| $839 (+2%) | -$626 | +$1,704 | +$4,707 | +$9,846 |
| $864 (+5%) | +$528 | +$2,921 | +$6,030 | +$12,315 |
| $890 (+8%) ← target | +$1,654 | +$4,094 | +$7,273 | +$14,897 |
| $905 (+10%) | +$2,285 | +$4,743 | +$7,944 | +$14,897 |
| $946 (+15%) | +$3,846 | +$6,324 | +$9,516 | +$14,897 |
| $988 (+20%) | +$5,226 | +$7,684 | +$10,779 | +$14,897 |
Why This Strategy, Why Now
- RSI at 45
- IV +3% vs avg — premiums above average
- MACD bearish — stock may keep falling (risk)
- ADX at 21 — moderate trend
- No squeeze — no imminent breakout
Key Risks
The main risk is missing upside if MU rallies sharply. The premium received ($X per share) provides a buffer, but gains above the strike are forfeited.