Selling MU puts for income.
Semiconductor stocks have held up well despite the market’s recent pullback. MU gives us an opportunity to collect an annualized yield of nearly 38% if held through expiration. Plus we’re setting up the trade with more than $3.00 per share of risk buffer between the current stock price and our agreement price.
- Sell (to open) 1 MU January 21st $80 put
- Limit: $4.15 or more
- The new position will represent roughly 8.4% of our model.
- 12:59 Executed
- Sold 1 MU Jan 21st $80 put @ $4.30