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

Micron Technology shares have 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. For instance, a one‑month put expiring April 2, 2026 with a $350 strike trades at a premium of $20. 35 per contract. Selling this put brings in $2, 035 on a $35, 000 margin, an immediate yield of 5. 8 %. The break‑even price is $329. 65, about 14. 7 % below today’s level, so the trade remains attractive even if the share price drops to that point. Going further out adds yield and safety. A May 15, 2026 put at a $330 strike has a mid‑price of $26. 10, giving an instant return of 7. 9 %. Its break‑even sits at $303. 90, a 21. 4 % slide from the current price.Analysts are bullish on Micron’s future. Average target prices have climbed from $356 to $393 over the past month, while a broader survey shows targets rising to $454. 38. The company’s latest earnings revealed an adjusted free‑cash‑flow (FCF) margin of 28. 6 % on $13. 643 billion in revenue, and management expects 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. Thus, shorting OTM puts not only offers immediate income but also positions investors to buy Micron at a discount while the market’s expectations rise.