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Micron Technology, Inc. (NASDAQ:MU) is fresh off a decade-plus high of $32.97, thanks to last night's fiscal third-quarter earnings beat and this morning's round of bullish brokerage attention. At last check, the shares were 4.4% higher at $32.64. Elsewhere, options are trading at faster than three times the normal intraday pace, while the stock's 30-day at-the-money implied volatility plummeted to an annual low earlier, and was last seen down 27.4% at 32%.
Attracting the most attention is MU's weekly 6/27 32-strike call, where 17,720 contracts have traded. Many of them have been bought to open, as speculators are wagering on a continued move north for the shares. While the contracts are currently in the money, in order to profit, the traders need the underlying to be atop breakeven at $32.73 (strike plus the volume-weighted-average price of $0.73) at this Friday's closing bell, when the weekly calls expire. Potential gains are unlimited above that mark, while the maximum potential loss is capped at the initial premium paid, should Micron Technology, Inc. (NASDAQ:MU) backpedal and end the week below the strike.