- New Trades -

Micron Technology - MU - close: 24.51

02/09/14: In our last newsletter the entry strategy for MU was adjusted. Instead of waiting for a dip toward support the trigger was switched to a breakout move. The plan was to wait for MU to close above $24.50 and then buy calls the next day. MU met that requirement with Friday's close at $24.51. Our play will open on Monday morning, Feb. 10th.

The long-term trend remains bullish with a strong pattern of higher lows. MU was very resistant to the market's recent sell-off. The current bounce has lifted shares to new multi-year highs. Our initial target will be $29.75.

Earlier Comments:
Keep in mind that late last year MU saw some volatility around news that a rival chip maker, Hynix, was building a new factory in 2014 and investors worried that might (naturally) impact supply and thus memory pricing. This could be a story that shows up again in 2014 even though the new factory probably won't start producing until 2015.

Trigger was a close above $24.50.

BUY the 2015 Jan $25 call (MU1517a25) current ask $3.70

- or -

BUY the 2016 Jan $30 call (MU1615a30) current ask $3.60

02/07/14 MU meets our entry point requirement with a close above $24.50
02/03/14 adjust entry strategy. Instead of a buy-the-dip trigger at $22.00, wait for MU to close above $24.50 and then buy calls the next day.

Daily Chart of MU:

Weekly Chart of MU:

Current Target: MU @ $29.75
Current Stop loss: 21.75
Play Entered on: 02/10/14
Originally listed on the Watch List: 01/12/14