Investors in Micron Technology Inc. (MU) are engaging in new options trading as of today for the July 22 expiration. Notably, a call contract at a $945.00 strike price has a current bid of $60.90. If an investor buys shares at $910.02 and sells this covered call, they could achieve a total return of approximately 10.54% if the stock is called away at expiration.
The $945.00 strike represents an approximate 4% premium to MU’s current price and has a 51% chance of expiring worthless, allowing the investor to retain both the shares and the premium. This premium could result in a 6.69% additional return, equating to an annualized 162.84%. The contract’s implied volatility stands at 101%, while the trailing twelve-month volatility is calculated at 75%.
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