Bear Call Spread – MU
📉 All-time-high persistence after successful prior-week fade. Opened November 10.
Micron Technology (MU) continues holding near all-time-high territory following last week’s successful bear call spread that captured full premium. The stock closed Friday’s expiration comfortably below the $270 short strike, allowing the November 7 position to expire worthless as structured. Now, Monday’s session shows MU still consolidating in the $256 range—elevated but not accelerating. RSI remains overbought across daily timeframes, and the chart shows no meaningful correction despite last week’s parabolic setup. The question: Can buyers sustain this level without fresh catalysts, or does consolidation invite profit-taking before Friday’s expiration?
Setup Selection
This week’s chart shows continuation of the pattern: MU holding ground near ATH levels (~$256 current), but without fresh momentum to push materially higher. Daily RSI remains deeply overbought (74.00), and the weekly timeframe shows sustained elevation without meaningful pullback. MACD histogram reflects weakening momentum—green bars present but compressing, suggesting exhaustion rather than expansion.
Monday’s opening action showed no gap, no surge—just steady trading within Friday’s range. This type of consolidation after vertical moves typically precedes either sideways digestion or mean reversion, not renewed acceleration.
My entry logic: No dramatic reversal pattern here—just extended price action refusing to correct. The confluence: all-time-high persistence on overbought conditions, lack of fresh momentum, and two-week consolidation suggesting exhaustion. This isn’t a bet on crash—it’s a fade of renewed vertical acceleration through $290 by Friday. The 10-delta positioning reflects high probability that MU continues consolidating, pulls back modestly, or simply fails to extend materially higher by expiration.
Why Bear Call Spread?
Defined risk with capped downside exposure
Multi-timeframe RSI exhaustion + ATH consolidation rarely ignites without catalyst
Two-week elevated hold suggests profit-taking pressure
Profits from stagnation, consolidation, or decline—doesn’t require crash
10-delta positioning provides ~90% probability buffer
The setup doesn’t demand MU collapses—only that it fails to push through $290 by Friday’s expiration.
Trade Structure
Expiration: November 14, 2025
Short Call: $290 (10-delta)
Long Call: $300
Contracts: 13
Credit Received: $0.40 per contract
Maximum Profit: $520 (gross)
Broker Fee: -$11.11
👉 View on OptionStrat
👉 View in Trade Log
Entry and Exit Plan
The position was opened Monday, November 10, shortly after market open. The short strike at $290 sits ~13% above current price—a buffer designed to absorb continued strength while maintaining ~90% probability of expiring worthless.
This isn’t a directional bet on collapse. It’s a fade of vertical continuation from already-elevated levels. The trade profits from consolidation, sideways action, or modest pullback—anything except sustained acceleration through $290 by Friday.
The plan is simple: hold through expiration and collect full premium. No early exits. Time decay does the work.
If MU threatens the short strike with expanding momentum and volume, the position will be managed based on price action and sector behavior. But the setup is structured around that scenario being unlikely.
Last week’s identical logic worked. This week applies the same framework: high probability, defined risk, mechanical execution.
❤️ Support the Project
This Substack is free to read.
If you find value in the posts and want to support consistency,
you can do so 👉 by donating here 👈
Thanks for reading. Let’s build better trades.
Disclaimer
All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.