Memory stocks continue to be on fire. MU traded up another 10% on Friday’s opening bell and was about 6% higher late in the morning. I want to use this move higher in this juggernaut to create a short-term income stream and book profits. Using options, I can define my risk as Micron establishes new all-time highs. Micron Technology (MU) on Friday broke ground on its $100 billion memory manufacturing complex in Onondaga County, New York, and called it the largest semiconductor facility in the United States. Last year, Micron announced plans to expand its U.S. investments to around $150 billion in domestic memory manufacturing and $50 billion in R & D, creating an estimated 90,000 direct and indirect jobs. Micron has been on a tear lately and currently sits as the largest weighting in both the iShares Semiconductor ETF (SOXX) as well as my KKM Mango Growth ETF (GARY). Micron is up over 24% year to date after being up an incredible 240% in 2025. It’s not like RSI levels seem to matter anymore to semis, but Micron’s current RSI is over 70 — which signals the tech leader is overbought. Due to my overweight position, I have being long Micron, I want to sell a call spread. Instead of just electing to utilize a covered call approach (normal approach), I want to sell a defined-risk call spread in the event Micron does not stop ripping higher. In the event MU moves up more than 10% before my expiration (which is very plausible), I want to own a further out-of-the-money upside call to allow my long position to resume capturing this parabolic move. However, I am producing a significant income stream over the next month by selling this call spread. The trade Sold the Feb. 20 $390 MU call for $14.50 Bought the Feb. 20 $420 MU call for $8 An investor will collect $6.50 or $650 per one call spread sold. Micron was trading roughly at $360 when this trade was made. ISCLOSURES: Kilburg is long Micron and sold this call spread in MU All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
