Microchip (MCHP) Offering Possible 40.85% Return Over the Next 17 Calendar Days

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Microchip’s most recent trend suggests a bearish bias. One trading opportunity on Microchip is a Bear Call Spread using a strike $75.00 short call and a strike $80.00 long call offers a potential 40.85% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $75.00 by expiration. The full premium credit of $1.45 would be kept by the premium seller. The risk of $3.55 would be incurred if the stock rose above the $80.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Microchip is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Microchip is bearish.

The RSI indicator is below 20 which suggests that the stock is in oversold territory.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Microchip

Microchip Technology (MCHP) Reports Next Week: Wall Street Expects Earnings Growth
Thu, 28 Oct 2021 19:05:07 +0000
Microchip Tech (MCHP) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Chip Lead Times Begin to Slow, Suggesting Shortages Have Peaked
Tue, 26 Oct 2021 15:58:24 +0000
(Bloomberg) — Delivery times for chips in October posted their smallest gain in about nine months, signaling that the shortages that have punished a broad swath of industries may finally be easing. The lead times — a closely watched gap between when a semiconductor is ordered and when it’s delivered — increased by one day to about 21.9 weeks this month compared with September, according to research by Susquehanna Financial Group. That lag, while the longest wait time since the firm began trac

Intel CEO: Chip shortage highlights a national security issue
Tue, 26 Oct 2021 13:46:12 +0000
Intel CEO Pat Gelsinger says at the Yahoo Finance All Markets Summit more production of semiconductors needs to be done in the United States to protect national security.

Intel CEO on chip shortage: ‘We have a rough road in front of us’
Tue, 26 Oct 2021 10:01:57 +0000
The semiconductor shortage is unlikely to end anytime soon, Intel CEO Pat Gelsinger said at Yahoo Finance’s All Markets Summit.

Intel CEO: My job is to win Apple back
Mon, 25 Oct 2021 20:50:12 +0000
Intel has its sights set on regaining lost business from Apple, explains CEO Pat Gelsinger at Yahoo Finance’s All Markets Summit.

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