How to Play a Bounce in a Beaten-Down Stock Like Micron

The memory names have gone from some of the hottest runs of the year to an aggressive selloff, and in this trade of the day one tastylive trader lays out how he is playing it. His longer term view is that the top may be in, but the drop has been so fast that he wants to catch a short term bounce rather than chase the move lower. So he sells an out of the money put spread in Micron, a defined risk way to get a little long delta while leaving room below the market. Along the way he explains the difference between the front side and the backside of a move, and why shorting a runaway stock on the way up is where traders usually get burned. None of this is a trade recommendation. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 The memory names have sold off 00:10 Why not to trade SanDisk yet 00:22 Turning to Micron for a bounce 01:08 Why he thinks the top is in 01:50 Choosing the August expiration 02:10 The wider strikes add more risk 02:58 Front side versus backside of a move 03:51 Giving the trade room to bounce 04:35 Picking the strikes off the chart 06:01 Sending the order through #tastylive #optionstrading #micron #putspread #memorystocks #semiconductors #tradeoftheday #definedrisk #tastytrade #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.