A couple of potential high fliers due for a fall?

- Micron: ticker mu: price rose from 65 to 139 in past year, P/E negative, operating income negative with bumpy history
Possible positions:
roughly 30% OTM June 20 2025 put strike 100 bid 7.20 ask 7.75 mid 7.475, so one contract 747.50
roughly 50% June 20 2025 put strike 70 bid 1.30 ask 2.35 mid 1.825, so one contract 182.5

If did put spread then: 747.50-182.5=565, and 565/747.50= 0.75 so roughly a 25% reduction in cost with spread

- Taiwan Semiconductor. ticker tsm: price rose from 100 to 167 in past year, P/E 32, operating income now negative with bumpy history, sold by Buffett in 2023
Possible positions:
roughly 30% OTM June 20 2025 put strike 115 bid ask 4.60 4.90 mid 4.75 so one contract about $475
roughly 50% OTM June 20 2025 put strike 85 bid 1.25 ask 3.00 mid 2.125 so one contract about $212
If did put spread then: 475-212=263, and 263/475= 0.55, or roughly a 45% reduction in cost with spread

Potential issue with put spreads:
Puts (and calls) are quite senstive to price and also quite sensitive to volatility. Ideally one wants to take advantage of both.
A put spread buys one put option and sells another to offset the cost of the long put.
But this also offsets the effect of a spike in volatility.
A put spread has low 'vega', i.e. a spread is not very sensitive to changes in volatility whereas a single put is much more sensitive to changes in volatility
fidelity.com - Bear put spread
I actually don't like 'the Greeks' because people so often misinterpret them, but people quote them, so I threw in the reference.

More practically, a while ago I scanned through some historical options data for the S&P500, looking for puts that had a huge increase in value, just out of curiousity. I found one that increased some ridiculous amount at some point during the Great Recession (like 10x-50x the initial ask, sorry I forget the exact factor, but it was astonishing). This was a fairly reasonable put too, it was maybe a 30-40% OTM or so 'disaster' put with some reasonable lifetime like nine months or something. Anyway, it spiked to absolutely huge multiples of the initial ask.
This spike in put value was due to a drop in price and a spike in volatility.
A single put is both a price play and a volatility play, while a put spread is more of a price play.