Micron Technology, Inc. (MU) Bulls Look for a Breakout

Micron Technology, Inc. touched its newest 12-year high out of the gate

by

Published on Dec 8, 2014 at 10:29 AM
Updated on Apr 20, 2015 at 5:32 PM

Micron Technology, Inc. (NASDAQ:MU) matched a 12-year high of $36.50 on Friday, and has already topped that mark this morning, touching $36.59 minutes ago. At last check, however, the shares were off 0.4% at $36.36. In options land, the April 27 call saw the biggest translation in open interest over the weekend -- adding nearly 7,800 contracts -- suggesting fresh bets were placed to end last week.

Taking a quick step back, calls outstripped puts by a more than 1.5-to-1 margin on Friday. The most active MU strike by a mile was the deep in-the-money April 27 call, referenced earlier, where 8,001 contracts changed hands. The vast majority did so at the ask price, suggesting newly bought bullish bets.

While the calls are currently in the money, at-expiration breakeven on the trade is $37.20, or the strike plus the volume-weighted average price of $10.20. This represents a level not explored since March 2002, and a 2.3% premium to MU's current perch.

Regardless, Micron Technology, Inc. (NASDAQ:MU) has been a monster on the charts, advancing more than 67% year-to-date. If this trend continues, a short-covering rally could materialize, as nearly 9% of the equity's float is sold short. This represents more than a weeks' worth of pent-up buying demand, at MU's average daily trading volume.


A Schaeffer's exclusive

TOP STOCK PICKS 2020

Access your FREE insider report before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.
Ulta Stock Moves Lower on New Coronavirus Measures
Ulta has closed all of its stores until further notice
Johnson & Johnson Stock Scaling Dow After COVID-19 Vaccine Update
Johnson & Johnson hopes to have 1 billion doses available by early 2021
IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.