Analyst Anticipates Strong Earnings from Micron Technology

Options traders have been much more bullish than usual as well

Laura McCandless

Deputy Editor

Mar 18, 2024 at 3:23 PM

Barclays lifted its price target on Micron Technology Inc (NASDAQ:MU) stock to $120 from $95 ahead of this week's earnings report, anticipating "another strong beat and raise" from the company. MU initially jumped over 4% after the bull note today, though has since pared gains -- up 0.9% at $94.11 at last look.

Micron Technology will report earnings after the close on Wednesday, Mar. 20. The options pits are pricing in a 16.2% swing after the event, regardless of direction, which is much larger than the 4.3% move the stock has averaged over the past two years. Of those last eight reports, MU finished its next-day session positive just three times, one of which was a 8.6% rise this past December.

Call traders have been targeting the semiconductor stock the last 10 weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MU's 50-day call/put volume ratio of 3.14 ranks higher than 98% of readings from the past year.

Follow @Schaeffers

The $25K Day Trading Barrier is Gone

The long-standing Pattern Day Trader (PDT) rule that required many traders to maintain a $25,000 account balance is no longer standing in the way.

That means more traders can actively pursue short-term opportunities without the barrier that kept so many on the sidelines.

Now it's all about having the right strategy.

Dynamite Day Trading Signals helps you hit the ground running with up 2 options trade alerts per week, built to capture fast-moving opportunities.

👉 Sign up now to receive the next trade