OptionsHouse

Options Trading News

August 19, 2013  Mon 11:33 AM CT

MU: SEE CHART GET CHAIN FIND STRATEGIES
Micron Technologies is seeing long-term call selling, which is apparently the option strategy of the day so far.

A trader sold 14,000 January 2015 20 calls for the bid price of $1.35, according to optionMONSTER systems. This is a new position, as its volume was more than the strike's previous open interest.

Less than a minute later the largest block of MU stock traded as 490,000 shares were bought for $14 even. Combined with the calls, this creates a delta-neutral play that is looking for lower volatility. That means the trader is counting on shares staying in a range and/or less actual volatility than that implied by the call premium. (See our Education section)

MU is down 0.48 percent to $13.94 this afternoon. The memory-chip maker hit $15.07 last week, its highest price since 2006. Shares were below $6 at the October low.
Share this article with your friends


Related Stories

MU

Cramer: Put currencies in context

April 6, 2015

Discounting is a strange process. In the short term, it can be, and often is, just plain wrong. But in the intermediate term, there may be a reluctance to sell no matter how ugly.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Education & Strategy

Vega

There is another Greek which measures the effects on an option's price buy changing the amount of extrinsic value in the option, and that Greek is Vega...

View more education articles »