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Like Micron, but not the price? One options strategy to consider
Micron Technology Inc. (NASDAQ: MU) is scheduled to report earnings on 30 September 2026 after the market close. Consensus expectations currently call for revenue of approximately US$51.07 billion and earnings per share of US$31.52. The company previously reported quarterly revenue of US$41.46 billion and EPS of US$25.11, exceeding analyst expectations.
But what if you like Micron for the long term — just not at today’s price?
One options strategy some investors use is a cash-secured put. In simple terms, you get paid a premium today in exchange for agreeing to buy the shares at a lower price if they fall.
For investors who already want to own the stock, it can be an alternative to simply placing a limit order and waiting.
What is a cash-secured put?
Imagine Micron is trading at around US$1,083, but you would only be comfortable buying it closer to US$1,000.
You could simply wait and hope the share price falls.
Or you could sell a put option with a US$1,000 strike price.
By selling the put, you receive an option premium upfront. In return, you take on an obligation: if Micron falls below the strike price and you are assigned, you must buy 100 shares at US$1,000 each.
The strategy is called “cash-secured” because you keep enough cash available to make that purchase.
The important question, therefore, is simple: Would you genuinely be happy owning Micron at that price?
If the answer is no, selling the put probably does not make sense.
Micron example: getting paid to set a lower entry price
At the time of writing:
- Micron share price: approximately US$1,082.97
- Put strike: US$1,000
- Expiry: 2 October 2026
- Option premium: approximately US$14.15 per share
- Implied volatility: 91.92%
- Delta: -0.17
- Open interest: 2,113 contracts
Because one US equity option normally represents 100 shares, selling one put would generate:
US$14.15 × 100 = US$1,415 in premium
But you would also need to reserve:
US$1,000 × 100 = US$100,000
to purchase the shares if assigned.
And because you already received US$14.15 per share in premium, your effective purchase price would be:
US$1,000 − US$14.15 = US$985.85 per share
That is about 9% below Micron's current share price.
What happens next?
There are two main outcomes.
Micron at expiry | What happens | Your outcome |
Above US$1,000 | The put expires worthless | You keep the US$1,415 premium and do not buy the shares |
Below US$1,000 | You are likely assigned | You buy 100 shares at US$1,000, with an effective cost of US$985.85 after accounting for the premium |
So far, that sounds attractive. But there is an important catch.
US$985.85 is your break-even price — not a guaranteed bargain.
If Micron falls to US$900, US$800 or lower, you are still obligated to buy the shares at US$1,000 if assigned. The premium provides some protection, but only the first US$14.15 per share.
After that, you participate in the downside much like any other shareholder.
What are the risks?
While Micron has benefited from strong demand tied to artificial intelligence, memory products, and high-bandwidth memory solutions, investors remain focused on whether current growth rates and margins can be sustained. Recent coverage has highlighted expectations for continued AI-related memory demand, tight industry supply conditions, and strong pricing trends. Read our detailed Micron preview here.
However, several risks remain:
- The memory industry has historically been highly cyclical, meaning pricing and profitability can change rapidly.
- Future earnings guidance may prove more important than headline earnings results, especially after the company's strong share-price appreciation over recent years.
- Competition within memory and AI-related semiconductor markets remains intense.
- The company is currently facing a patent-related investigation involving memory products, which could create uncertainty if developments become material.
- High implied volatility ahead of earnings can signal expectations for larger-than-normal price swings.
For cash-secured put sellers specifically, the primary risk is that the stock declines significantly and you are required to purchase shares at the strike price despite a much lower market value.
Why might this appeal to a long-term investor?
Some long-term investors view a cash-secured put as a way to get paid while waiting for an opportunity to buy shares at a lower price.
Rather than placing a limit order and receiving nothing while waiting, a cash-secured put allows the investor to collect option premium. If the shares remain above the strike, the premium is retained. If the shares fall and assignment occurs, the investor acquires the stock at an effective cost below the strike price.
Of course, this approach only makes sense if the investor is genuinely comfortable owning the shares and has sufficient cash available to meet the purchase obligation.
Key definitions
Strike Price
The price at which shares may be purchased if the put option is assigned.
Premium
The amount received upfront for selling the option.
Assignment
The process by which the option seller is required to buy the underlying shares.
Expiry
The date on which the option contract ends.
Break-even Price
The strike price minus the premium received. In this example, US$985.85.
Cash-Secured
A strategy where enough cash is reserved to buy the shares if assignment occurs.
Delta
An options measure that indicates how sensitive the option price is to changes in the underlying stock price.
The market's expectation of future price movement reflected in option prices. Higher implied volatility generally leads to higher option premiums.