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August 1, 2014  Fri 3:47 AM CT

MU: SEE CHART GET CHAIN FIND STRATEGIES
A huge trade apparently sees limited upside for shares of Micron Technology.

optionMONSTER systems show that 17,000 January 2016 40 calls traded for $3 in a single print yesterday. This is a new position, as the volume was above the strike's previous open interest.

A few minutes later, a block of 612,000 shares was bought for $30.12, followed by another 1,021,069 purchased for $30.09. Combined with the options, this creates a covered-call trade that is bullish up to, but not beyond, the $40 level through early 2016. The $3 credit also provides a downside cushion. (For more on the strategy, see our Education section and this recent column in our Advantage Point newsletter.)

MU fell 6.09 percent to $30.55 yesterday, its lowest close since June 10. The memory-chip maker reached a 12-year high of $34.85 two weeks ago.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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