Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

Micron Technology (MU) Bulls Bet On End-of-Week Gains

Micron Technology, Inc.'s weekly 7/25 34-strike calls were popular yesterday

by 7/24/2014 9:45 AM
Stocks quoted in this article:

Micron Technology, Inc. (NASDAQ:MU) call volume quadrupled put volume yesterday -- 80,000 contracts to 20,000. Roughly one-quarter of the calls that changed hands did so at the weekly 7/25 34 strike -- MU's most active option -- as speculators wagered on a modest advance in the shares by week's end.

Digging deeper, roughly 18,900 contracts traded at the aforementioned strike. Since the majority crossed at the ask price, and open interest soared overnight, it's safe to assume the calls were bought to open at a volume-weighted average price (VWAP) of $0.20. Thus, the option players expect MU to be sitting above breakeven at $34.20 (strike plus VWAP) tomorrow night, when the weekly contracts expire. Gains are theoretically unlimited north of breakeven; by contrast, the traders' maximum risk is the initial premium paid, which they'll lose if the shares are sitting below the strike at Friday's closing bell.

On Wednesday, Micron Technology, Inc. (NASDAQ:MU) finished fractionally higher at $33.68, following the announcement of a $1.15 billion offering of 5.50% senior notes. From a longer-term perspective, the stock has outperformed the market -- up more than 150% year-over-year -- and tagged a fresh 12-year high of $34.85 last week.


Featured Brokers
Unusual Option Volume
Option Flow
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2015 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email:

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by | Data delayed 15-20 minutes unless otherwise indicated.