Chip Stock Brushes Off Stellar Quarterly Report

Options volume is running at eight times the intraday average

Deputy Editor
Jun 29, 2023 at 10:23 AM
facebook X logo linkedin


Semiconductor specialist Micron Technology, Inc. (NASDAQ:MU) is down 4.8% at $63.84 at last glance, even after the company reported better-than-expected earnings and revenue for its fiscal third quarter. According to Micron Technology, the memory chip industry is ready for improving profit margins following a trough in revenue.

No less than five analysts hiked their price targets following the event, led by Needham's adjustment up to $80 from $71. Sentiment was already optimistic, though there's still room for additional price-target raises. Coming into today, seven of the 21 in coverage still called MU a tepid "hold" or worse.

Options traders are in a frenzy as well. So far, 163,000 calls and 82,000 puts have crossed the tape, which is eight times the intraday average. Most popular by far is the weekly 6/30 70-strike call. 

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Micron stock's 10-day call/put volume ratio of 2.63 ranks higher than 99% of readings from the past year. This indicates that options traders have favored bullish bets in the longer-term, too.

The equity's 60-day moving average is keeping today's pullback in check, as the security looks to snap a three-day winning streak. Still, thanks in part to a late-May pop to 12-month highs, MU maintains a nearly 30% year-to-date lead.

 

*SPONSORED CONTENT*

How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.

*SPONSORED CONTENT*