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Today, we’re opening a new bullish trade on Micron Technology (NASDAQ:MU).
MU has an earnings announcement coming up next week on Tuesday, Dec. 19, after market close, and because the stock got caught up in the “tech wreck” pullback in late November, it is in an excellent position to rally after the company releases earnings.
MU is currently bouncing down from resistance at $45, but we expect the stock to break above this level as it rallies back up toward its recent highs just below $50 if the company can beat earnings expectations, which we expect it will.
Even though NAND and DRAM storage prices slid a bit last week, the six-week average is still higher, and we expect that heavy demand, coupled with stable margins in these areas, will lead to a positive announcement from MU next week.
‘Buy to open’ the MU January (2018) 45 Call (MU180119C00045000) for a maximum price of $1.80.
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