Aug. 11 at 11:07 AM
With support around
$800 and a price target around
$1,550,
$MU looks to have significantly more upside than downside in front of itself. The fundamentals also indicate that these shares are grossly underpriced. Yet, all you read about is the cyclicality of these memory chip companies. Believe what you want to believe but this company will be growing earnings at a rate greater than 100% for the next several years. And traders have put a forward multiple of just 5.5 times earnings on these shares. That’s going to result in a tremendous amount of upward pressure on the price of these memory chip shares. So you can argue about how far and how fast these shares will rise, but most will agree that rise they will. So the way I’m going to approach this is by selling OTM Puts on
$MUU (weekly) and/or
$MULL (monthly). That seems to be the more conservative approach, or at least the more likely to show a profit.