• Kumar

Micron Technology ($MU) Earnings 06/29

How should you play Micron Earnings Today? It comes out in 6 hours from now.. and now is the time for gamble to start the week off right :P just kidding... but really what position are you going to take for earnings? In my opinion earnings is all based on how will people react to the earnings? Things to always consider when going long or shorting an earnings play.

  1. Have Earnings Been Priced In?

  2. Is there any new announcement people are expecting (products/partnerships?)

  3. What is the short float? (how many people are betting against the stock?)

  4. What is the current market condition, is the day bullish or bearish?

  5. Run up or slam down before earnings call?

These are the handle full of items that you would need to consider before buying or going short into an earnings play. The chart looks very bullish and has a great trend in tact, there are 2 plays that work out best in my opinion for this stock, depending on if your risk level.

  1. Vertical Put Credit Spread (Bullish), Sell the $45P and buy the $44P, this pays around 15% return on your money, Risk of $88 to Win $18 dollars.

  2. Buy Long $50C for $1.11 (current price), this is more risk because the stock needs to go to $51.11 for you to break even, though the upside potential is unlimited in this play.

We will announce the play we are looking to take today in our live trading group! Come join us if you have not already.