Chip Stock Falls on Mixed Q1 Forecast

The company also anticipates higher-than-expected operating expenses

Deputy Editor
Nov 28, 2023 at 1:35 PM
facebook X logo linkedin


The shares of Micron Technology Inc (NASDAQ:MU) are down 2.9% at $75.30 this afternoon, even after the computer memory and data storage firm hiked its first-quarter adjusted gross margin. The company expects to approach breakeven, thanks to improved supply and demand balance.
 

Weighing on the equity today instead is estimates that operating expenses will be higher than previously forecast. In response, the stock is pulling back from its Nov. 20 more than 12-month high of $78.91, but it still boasts a respectable 50.7% year-to-date lead. The $74 level is also keeping today's dip in check, helping MU maintain a 12.5% November gain.

MU November 272023

The options pits are optimistic. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Micron stock sports a 10-day call/put volume ratio of 1.70 that stands higher than 86% of readings from the past year. This means calls have been getting picked up at much quicker-than-usual clip of late.

Those that want to take advantage of today's pullback and join these bullish traders should consider options. The stock is seeing attractively priced premiums at the moment, per its Schaeffer's Volatility Index (SVI) of 31% that sits in the 14th percentile of its annual range. This implies options traders are pricing in low volatility expectations at the moment.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI