Micron Stock is Now Close to Fair Value, But Shorting 2-Week Puts Yield 7.0%

Micron Technology (MU) stock is now close to fair value, as analysts have been raising their revenue forecasts and price targets. One of the best plays now is to sell short out-of-the-money puts, given their very high premiums. For example, short 2 weeks out MU puts with 5% below today's price yield 7.0%.

MU closed down 1.4% on Friday, June 12, at $981.61. That's off its recent peak of $1,079.57 on June 3, but could be the quiet before the storm. Micron is expected to release its fiscal earnings on June 24.