The Bear Put Spread on Micron Technology (MU), opened on February 2, was closed on Wednesday, February 4, after the anticipated pullback materialized.
Following an extended multi-week rally, MU finally began to unwind. Price rolled over from the highs and moved lower toward the short-term mean, validating the momentum exhaustion thesis behind this trade. The move was sufficient to lock in the planned profit without waiting for any deeper continuation or holding risk into expiration.
As intended, this was never a bet against the broader trend. It was a tactical mean-reversion trade, and once the objective was met, the position was closed decisively.
Both legs were closed simultaneously.
Trade Recap
Structure: Bear Put Spread
Underlying: MU
Expiration: March 20, 2026
Strikes: 450 / 440
Contracts: 4
Entry: February 2, 2026
Exit: February 4, 2026
Result: +$527 net after commissions
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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.
The discipline to close at target without chasing deeper moves is underappreciated. Most people either exit too early out of fear or hold too long hoping for max profit. Tactical mean reversion makes sense when momentum gets stretched, but timing the exit precisely is where edge really shows up. Intresting how the trade stayed only 2 days, thats the kind of turnover most people aren't patient enough to execute consistently.