12-4-17 5:15 PM EST | Email Article

Jim Strugger, MKM Holdings derivatives strategist, spoke on Bloomberg Markets about a bullish options trade in Micron Technology, Inc. (NASDAQ: MU).

The company reports earnings Dec. 19 and the stock has shown weakness ahead of earnings, losing around 18 percent just over the last week, said Strugger. He added that the stock trades at around 7 times 2018 consensus EPS, which makes the valuation attractive. He wants to buy the weakness in the name and he wants to use a risk reversal to do so.

Strugger wants to sell the January 36 put, buy the January 31 put and buy the January 46 call. The total cost for the trade is 60 cents and it's going to make money at the January expiration, if the stock closes above $46.60.

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