πππFor those investors who already own
$Micron Technology(MU)$ and remain bullish on its long term prospects due to AI demand and tight supply conditions, a great options strategy is a Covered Call. This options strategy can help to generate income, mitigate risk and potentially lower your cost basis.
How it works: You own the stock and simultaneously sell a Call Option in those same shares with a strike price above the current market price and an expiration date in the future.
The benefit of this options strategy: You collect premium upfront. This will increase your overall return or provides a small buffer against a slight stock price decline.
The risk is that if Micron continues its rocket ship run past your strike price, your shares will be "called away", capping your maximum profit at that strike price plus the premium collected.
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