The automated Quantcha Trade Ideas Service has detected a promising

MU was recently trading at $43.76 and has an implied volatility of 45.55% for this period. Based on an analysis of the options available for MU expiring on 20-Apr-2018, there is a 27.52% likelihood that the underlying will close within the analyzed range of $43.77-$54.79 at expiration. In this scenario, the average linear return for the trade would be 180.22%.

**Price target:** Zacks Research has updated their six-month price target for MU to $49.81. This price target is a consensus price created from the price targets published by 16 participating analysts whose targets ranged from $39.00 to $65.00.

**Mean recommendation:** Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for MU has been updated to **1.27**, which indicates a **strong buy** consensus from analysts. Sentiment has moved from 1.25 to 1.25 to 1.29 over the past three months.

**Trade approach:** The difference between the current price for MU and the mean price target is $6.24, which represents a 13.83% move (30.04% annualized). Since the 180-day implied volatility for MU is 45.03%, a **neutral range-bound** strategy could prove effective if the price target ultimately turns out to be accurate.

**Upside potential:** Using this neutral range-bound strategy, the trade would be profitable if MICRON TECHNOLOGY closed in the range $43.48-$57.05 on 20-Apr-2018. Based on our analysis, there is a 32.34% likelihood of this return. The maximum return for this trade would be 306.78% if MICRON TECHNOLOGY closed at $48.00.

**Downside risk:** As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

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This is an automated post generated based on a market analysis of delayed data at 11/8/2017 12:13:51 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.