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I initiated a trade a few weeks ago with a bullish thesis tied to Micron’s positioning in the AI-driven memory cycle. Since then, the trade has delivered exceptional results, with our original $654 per contract investment turning into a 180% profit just one week before expiration. Given the rapid gains and compressed time value, we are taking profits here and redeploying into a new position to continue benefiting from MU’s upside potential. Trade timing & outlook Technical breakout: MU has broken above the $130 double-top resistance, which has now turned into support, confirming strong bullish momentum. Relative strength: The stock continues to outperform the S & P 500, reflecting potential institutional accumulation and growing conviction around Micron’s role in the AI memory cycle. Fundamentals Micron continues to trade at an attractive valuation despite outsized growth expectations. Analysts project a sharp ramp in both sales and earnings, driven by tight HBM supply and partnerships with Nvidia and AMD . Forward PE ratio: 10.6x vs. industry average 23x Expected EPS growth (FY2025): 110%+ vs. industry average ~17% Expected revenue growth (FY2025): 28% vs. industry average ~11% Net margins: 18.4% vs. industry average ~11.8% These figures reinforce Micron’s discount valuation relative to peers, even as it delivers superior profitability and growth metrics. Bullish thesis AI memory boom: Demand for HBM used in AI GPUs is surging, with Micron’s 2025 supply fully sold out and strong visibility into 2026. Market share gains: Micron’s share of the HBM market has climbed from ~4% in 2024 to 21% in Q2 2025, with targets of 23–24% by year-end, largely at Samsung’s expense. Strategic partnerships: Nvidia and AMD are expanding reliance on Micron’s HBM3E, a key driver of both pricing power and growth. Options strategy update We are closing the original bullish put vertical to lock in 180% gains and rolling into a new bullish trade by selling the Oct. 24 $135/122 put vertical @ $5.00 credit. This entails: Selling the Oct. 24, 2025 $135 put @ $8.98 Buying the Oct. 24, 2025 $122 put @ $3.98 Max profit: $500 per contract if MU closes above $135 at expiration Max risk: $800 per contract if MU closes below $122 Breakeven: $130.00 View this trade in OptionsPlay for updated pricing This structure reflects our confidence in MU holding above $130 support while still allowing us to generate income and maintain directional upside exposure. Summary Micron Technology’s breakout above $130, coupled with its expanding HBM market share and attractive valuation, continues to support the bullish thesis. Having booked 180% profits on the initial trade, we are rolling into a new defined-risk put vertical to stay positioned for upside, while risk-managing around $130 support. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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