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Options Radar: Micron Technology, Dick's Sporting Goods, and TASER

Reviewing notable options activity on Micron Technology, Inc., Dick's Sporting Goods Inc, and TASER International, Inc.

by 8/18/2014 12:30 PM
Stocks quoted in this article:

Three names seeing notable option activity today are semiconductor concern Micron Technology, Inc. (NASDAQ:MU), athletic apparel retailer Dick's Sporting Goods Inc (NYSE:DKS), and stun-gun maker TASER International, Inc. (NASDAQ:TASR). Here's a look at how today's option traders have been placing their bets on MU, DKS, and TASR.

  • Micron Technology, Inc. (NASDAQ:MU) is following the broader equities market into the black, up 1.1% at $31.83. The shares have advanced 46.3% so far in 2014, and option traders today are gambling on even more upside for MU this week. The equity's weekly 8/22 31.50-strike call is the most active option so far, with speculators buying the contracts to open amid hopes for an extended advance north of $31.50 through Friday's close. In light of MU's uptick today, delta on the call has jumped to 0.62 from 0.51 at Friday's close, suggesting about a 62% shot of expiring in the money at the end of the week.

  • Dick's Sporting Goods Inc (NYSE:DKS) is up 0.7% at $43.25, and the stock's short-term options are flying off the shelves ahead of the company's turn in the earnings confessional tomorrow morning. In fact, the security's 30-day at-the-money (ATM) implied volatility (IV) touched a 52-week high earlier in the session, and was last seen 7.5% higher at 39.1%. Digging deeper, puts are trading at 11 times the intraday norm, and it looks like one bear may be rolling down his position by selling to close September 38 puts, and buying to open September 37 puts.

  • TASER International, Inc. (NASDAQ:TASR) has added 8.3% to $15.06, bringing its month-to-date gain to nearly 25%, as hopes for the company's body-mounted cameras escalate in the wake of the situation in Ferguson, Missouri. Overall option volume is running at nine times the typical intraday pace, though calls are outpacing puts by a more than 2-to-1 margin. The equity's 30-day ATM IV has popped 9.2%, pointing to an escalating demand for short-term contracts, and buy-to-open activity has been detected at the stock's out-of-the-money September 16 call. By purchasing the newly front-month calls to open, the speculators expect TASR to surmount $16 -- territory not charted since early May -- by the close on Friday, Sept. 19, when the options expire.

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