Stocks quoted in this article:
After reaching an all-time high in mid-July, Micron Technology (MU - 75-3/4) dropped 25 percent to perfectly test its 20-week moving average in Friday's trading. The shares are bouncing higher off that test in today's action. While MU was trending at record-high levels, optimism on the stock was running high with its Schaeffer's put/call open interest ratio (SOIR) hitting an annual low on July 25. However, pessimism has been building since then. The SOIR spiked sharply higher today thanks to significant put adds on Friday. Open interest on the September 70, 75, and 80 puts grew by 2,200, 8,700, and 4,800 contracts, respectively. The focus has shifted to the call side today, as almost 11,400 contracts have traded on the September 75 call, which has open interest of just 140 contracts. This is one of the most-active calls on the Pacific Exchange.