S&P 500 Market Outlook: Bearish
Bearish Trade: MU $37.38 – Semiconductor
OptionsPlay’s bearish trade for Wednesday, March 18th is Micron (MU). MU is part of the Semiconductor Sector (SOX). SOX has declined 27.25% lower over the past month and its 1m and 6m trend turned bearish on March 6th and is just bounced lower off its $193 resistance level.
Micron’s 1m and 6m trend turned bearish on March 9th and recently broke below its $45 support level. With a technical score of 5 (out of 10), MU is a neutral stock that is starting to turn lower.
As a stop loss, if MU were to trade above $45 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade. We also recommend cutting losses on this options trade if the value of the vertical spread declines below $2.12.