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Micron Technology, Inc. touched a 12-year high out of the gate
Micron Technology, Inc. (NASDAQ:MU) has jumped 2.4% this morning to trade at $35.12, and earlier touched a 12-year high of $35.25. This follows Friday's similarly bullish session, during which the shares tacked on 3.3%, calls traded at twice the typical single-session rate, and the stock's 30-day at-the-money implied volatility rose 3.6% to 31% -- indicating elevated demand for short-term strikes.
Friday's most active non-expiring option was the weekly 12/12 36-strike call. Nearly nine in 10 crossed at the ask price, and open interest soared over the weekend, making it safe to assume bullish bets were initiated -- a theory confirmed by data from the International Securities Exchange (ISE) and Trade-Alert.
In short, these call buyers anticipate MU will topple $36 by the close on Friday, Dec. 12, when the weekly series expires. Gains are theoretically unlimited to the upside, while losses are capped at the initial premium paid, should the stock be sitting below the strike at expiration.
Longer term, Micron Technology, Inc. (NASDAQ:MU) has been a technical titan, advancing 62% year-to-date. Should this strong price action continue, short-covering activity could provide a catalyst even higher, as roughly 10% of the equity's float is sold short.