OptionsHouse

Options Trading News

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.
Share this article with your friends


Related Stories

MU

Bulls are chasing momentum in Micron

August 26, 2016

Traders are looking for the uptrend to continue in the memory-chip manufacturer, which has surged 36 percent in the last three months.

MU

Calls follow uptrend in Micron Technology

August 18, 2016

The memory-chip maker is up 54 percent in the last three months, and traders are looking for the upward momentum to continue.

MU

Micron Technology gets show of support

August 17, 2016

The memory-chip maker has skyrocketed recently, and traders apparently believe that shares will hold their ground in the next three months.

OptionsHouse

Premium Services

Education & Strategy

Dissecting a big institutional trade

This week's column will study a recent call ratio spread. We're not recommending using this strategy because it has potentially huge risk. But we can learn from this different use of options by a large institutional investor.

View more education articles »