Micron Technology Short-Put Plays Have Huge Yields - Attractive to Value Investors

Shorting cash-secured put options on Micron Technology (MU) can yield huge returns. A 2-month away MU put option yields 9.6% for a strike price 9% lower. And a one-month expiry MU put 9% lower has a 5.8% yield.

MU is down 7% today at $383.43. That has pushed up its put option premium in near-term expiry periods. Value investors can short out-of-the-money (OTM) put options to set a potentially lower buy-in point.