The January 6 Bear Call Spread on Micron Technology Inc (MU) expired fully out of the money as price failed to extend into the upper resistance zone by week’s end. After a sharp upside push earlier in the week, momentum cooled and transitioned into digestion, leaving the short strike untouched into Friday’s expiration.
Despite remaining in a broader uptrend, MU did not deliver the additional upside acceleration required to challenge the 370 level. Daily RSI stayed elevated, but range expansion stalled — a favorable environment for short-dated call premium selling.
Both call options expired worthless, resulting in a full-premium capture without any need for active management.
Trade Recap
Structure: Bear Call Spread
Expiration: January 9, 2026
Short Call: 370 (10-delta)
Long Call: 380
Contracts: 5
Net P/L: +$219 (after broker commissions)
👉 View on OptionStrat
👉 View in Trade Log
Final Thoughts
This trade followed the core framework precisely: short-term extension, overbought conditions, wide probabilistic buffer, and minimal time to expiration. No reversal was required — only the absence of continued vertical momentum.
Theta did the work.
Probability played out.
Full premium captured.
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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.
Nice work 🤝