r/options
MU earnings beat and now its sitting at VWAP after giving back some gains heres my take
MU beat earnings on strong AI memory demand; author is bullish on VWAP support and bought a 140/148 call spread.
- Strong earnings beat with EPS of $25.11 vs $20.20 expected and solid guidance driven by insane HBM/AI memory demand.
- Technical setup is bullish as the stock is holding the daily VWAP and the $135-138 support zone after the post-earnings pullback.
- 4-hour RSI is around 55, indicating the stock is not overbought and has room to run.
- Post-earnings IV crush makes buying naked calls too risky, requiring defined-risk strategies like call spreads.
- Risk of a broken setup if the stock loses the $135 daily close support level.
mu reported yesterday and numbers were actually good. eps $25.11 vs 20.20 expected revenue beat guidance looks solid because hbm/ai memory demand is just insane right now. stock ripped after hours then gave most of it back today and landed right on daily vwap
thats literally the setup i look for after earnings
on daily chart the support zone from last week is around $135-138 area where it was consolidating before earnings if that holds on a daily close structure is still good for continuation
today it pulled into vwap midday and just kinda ground along it for a couple hours before buyers stepped back in thats what im watching for not just touching vwap but actually spending time there and holding. rsi on 4h is like 55ish so room to run not overbought yet
for options idk about buying naked calls here iv crush after earnings will wreck you even if direction is right. doing a call spread instead bought the 140 sold the 148 cheaper less vega risk still get paid if it grinds up
risk is simple if we lose $135 daily close im out setup broken dont need to overcomplicate it
not saying its going to $150 just saying this is how im playing it with defined risk instead of yoloing and hoping anyone else watching this one? where do you see resistance above
small position 140/148 call spread expiring next friday entered today
This is a bot
What are you even talking about? $150?
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