By Licia Leslie
July 3, 2024
Hi Shoppers,
Monday’s price action in Micron Technology (TIcker: MU) created a beautiful hammer candle:
Yesterday gave us confirmation that $MU is ready to rally.
The first level of resistance is the bottom of that gap at $137.39.
The Jul12 expiration calls have a nice skew, meaning that the at the money calls have a lower implied volatility than the out of the money calls which makes for a nice vertical spread.
I like buying the 133 calls and selling the 138 calls for around $1.60.
Use a close below $131.30 as your stop loss.
Trade Review
Both the $SPX and the $QQQ did not reverse, we still have a bullish market.
Thanks for Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
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BY LICIA LESLIE
July 3, 2024