Micron Technology Earnings: Bull Put Spread Trade
1 min readAnalysis by AlgoThesis Editorial Desk
Market Memory
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The story
Micron Technology is set to report earnings, and traders are structuring bull put spreads — selling a put at a higher strike and buying a lower-strike put for protection — as a way to collect premium if MU stays above the short strike through expiry. FY2025 revenue came in at $37.4B, up nearly 49% YoY, with gross margins of 39.8% and diluted EPS of $7.59, reflecting a strong HBM/AI memory demand cycle.
The bull put spread thesis leans on MU holding a price floor into the print rather than needing to rally; the risk is a downside earnings surprise or guidance cut that breaks the short strike and turns the spread into a max-loss position. Key items to watch: HBM supply allocation commentary, DRAM pricing trajectory, and any guidance revision relative to the current consensus range.
The two-sided take
The house read
Two-sidedWrong ifA negative earnings surprise, weak DRAM/HBM pricing guidance, or broader semis selloff could push MU below the short strike, turning the position into a max-loss scenario — the specific strike placement determines the exact risk.
Published read · research, not advice