Options Trading News

November 6, 2012  Tue 3:47 AM CT

Traders are turning bullish on Micron as the memory-chip maker tries to rebound from multi-year lows.

More than 10,000 December 7 calls changed hands in a strong buying pattern yesterday, most of them going for $0.08, optionMONSTER's Heat Seeker system shows. The volume was more than triple the strike's open interest at the beginning of the day, indicating new positions.

MU rose 2.28 percent to $5.84 yesterday, just above its 50-day moving average. Shares closed at $5.17 on Oct. 24, only pennies above its lowest close since July 2009, but have been grinding their way higher since.

The call buyers are looking for MU to gain roughly 21 percent by expiration on Dec. 21. The traders could sell those options earlier at a profit if the stock rallies before then, but the calls will expire worthless if the shares don't move. (See our Education section)

Total option volume in the name was nearly double its daily average. Calls outnumbered puts by more than 7.5 to 1.

Micron has not scheduled its next earnings report, but some analysts are expecting it to release results in early December. Until then, Micron is scheduled to present at a barrage of industry events this month.

Among the venues are the Wells Fargo Securities Tech, Media & Telecom Conference tomorrow, the Daiwa Investment Conference on Nov. 14, the Needham HDD/Flash Memory & Systems Conference also on Nov. 14, the J.P. Morgan Boston Tech 1x1 Corporate Access Day on Nov. 15, and the Credit Suisse Annual Technology Conference on Nov. 28.
Share this article with your friends

Related Stories


Broad range seen for Micron Tech

September 23, 2015

The memory-chip maker has lost more than half its market value this year following a 350 percent rally in 2013 and 2014.


Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »