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MU Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 73/100
Micron Technology Inc (Technology) · $420.59 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
MU is trading at $420.59 with RSI at 51 (neutral territory). Options IV is at 66% — 25% below its 30-day average of 88%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
51
IV Today
65.8%
IV vs 30d Avg
-25%
MACD
bullish
ADX
20
MFI
56
The Setup
MU Covered Call
LONG STOCK
100 shares @ $420.59
SHORT CALL
$455 Jun '26 · $37.54/sh
Net Cost
$38,305
Max Profit
+$7,195
Break-even
$383.05
Projected P&L at Target
+$7,195
(18.8%)
P&L at Expiry
P&L Scenarios
What happens at different MU prices by expiry:
| MU Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $336 (-20%) | -$5,636 | -$5,169 | -$4,776 | -$4,658 |
| $358 (-15%) | -$4,019 | -$3,417 | -$2,829 | -$2,555 |
| $379 (-10%) | -$2,537 | -$1,805 | -$1,005 | -$452 |
| $400 (-5%) | -$1,196 | -$352 | +$649 | +$1,651 |
| $412 (-2%) | -$461 | +$440 | +$1,545 | +$2,913 |
| $421 (0%) ← now | +$0 | +$933 | +$2,098 | +$3,754 |
| $429 (+2%) | +$439 | +$1,400 | +$2,615 | +$4,595 |
| $442 (+5%) | +$1,057 | +$2,050 | +$3,322 | +$5,857 |
| $455 (+8%) ← target | +$1,658 | +$2,674 | +$3,981 | +$7,195 |
| $463 (+10%) | +$1,979 | +$3,003 | +$4,318 | +$7,195 |
| $484 (+15%) | +$2,776 | +$3,803 | +$5,100 | +$7,195 |
| $505 (+20%) | +$3,460 | +$4,464 | +$5,693 | +$7,195 |
Why This Strategy, Why Now
- RSI at 51 — neutral-bullish
- IV -25% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 20 — 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.