Today Micron is up $3 but was up $4. I’ve watched this stock for a long time so I’m making a near term directional prediction. I looked at the Relative Strength Index (RSI) and it’s through the roof. I believe, near term, the stock doesn’t go much higher. And possibly comes down a little. With the stock at $60.80 I sold 10 11/20/20 $62.50 Naked Calls.
Sell to Open 10 MU 11/20/20 $62.50 C @ 50¢ (+$500)
The stock has been moving, so if someone looked at this trade they might not like it. I feel, looking at the RSI, this is a good trade. However, it is a hot stock so the trade gets a Risk Factor 3.
I will watch the stock closely to see if I have to cover.
Successful trading,
Steve
The Options Coach