High‑Yield Short Puts on Micron: A Value Investor’s Playbook

Micron Technology shares slipped about 7 % to roughly $383, pushing the price of its near‑term put options higher. Investors who sell out‑of‑the‑money (OTM) puts can pocket a sizeable upfront payment while setting a lower entry point for the stock.

One‑Month Put (April 2, 2026)

• Strike: $350
• Premium: $20.35 per contract
• Cash Inflow: $2,035 on a $35,000 margin → Immediate yield: 5.8 %
• Break‑Even: $329.65 (≈ 14.7 % below today’s level)

The trade remains attractive even if the share price drops to the break‑even point.

Five‑Month Put (May 15, 2026)

• Strike: $330
• Premium: $26.10 (mid‑price)
• Immediate return: 7.9 %
• Break‑Even: $303.90 (≈ 21.4 % slide from current price)

Going further out adds both yield and safety.

Analyst Outlook

• Average target prices: climbed from $356 to $393 over the past month.
• Broader survey: targets rising to $454.38.

Micron’s latest earnings revealed:

• Adjusted free‑cash‑flow (FCF) margin: 28.6 % on $13.643 billion in revenue.
• Management expectation: record growth next year.

If Micron maintains a 30 % FCF margin, it could generate $23 billion in free cash next year. At a 4 % FCF yield, the stock might be valued between $510 and $656 per share, well above today’s price.

Bottom Line

Shorting OTM puts not only offers immediate income but also positions investors to buy Micron at a discount while the market’s expectations rise.