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Option Brief: Micron Technology, Inc. (NASDAQ:MU) calls traded at roughly three times the rate of puts on Friday. Not surprisingly, nine of the 10 most active strikes were calls. Assuming the top position was the July 24 strike, which saw roughly 17,100 contracts change hands.
The majority of the volume at the in-the-money strike crossed the tape at the ask price, suggesting they were bought. In addition, implied volatility ticked higher, open interest added nearly 11,800 positions over the weekend, and data from the International Securities Exchange (ISE) confirms considerable buy-to-open activity.
As alluded to earlier, with MU shares trading 1.5% higher today at $26.69, Friday's most active contract is already in the money. However, in order to profit from their bets at options expiration -- the evening of Friday, July 18 -- the option bulls need the stock to rally past breakeven at $27.64 (strike plus the volume-weighted average price of $3.64).
If Micron Technology, Inc. (NASDAQ:MU) can make it to that level, it would represent a new 12-year high for the stock. On the charts, the shares certainly look capable of such a move. MU has outperformed the broader S&P 500 Index (SPX) by 15.5 percentage points in the last month, and is up roughly 175% year-over-year.