Micron Technology, Inc. (MU) Bears Active Amid Apple-Samsung Buzz

Micron Technology, Inc. (MU) is being pressured by Apple Inc. (AAPL)-Samsung rumblings

Digital Content Group
Feb 24, 2015 at 10:52 AM
facebook X logo linkedin

Micron Technology, Inc. (NASDAQ:MU) is down this morning on rumors that Samsung has been selected to supply dynamic random access memory (DRAM) chips for Apple Inc.'s (NASDAQ:AAPL) next iPhone. Option bears are responding, with MU puts flying off the shelves at six times the expected intraday rate.

Digging deeper, the equity's weekly 2/27 28.50-strike put is seeing buy-to-open activity, as speculators wager on additional downside for the security through Friday's close, when the series expires. While the shares have lost roughly 6% this morning to trade at $29.52, the $28.50 area -- which roughly coincides with MU's 320-day moving average -- has served as support in 2015. As such, delta on the out-of-the-money put is negative 0.23, representing a less than 1-in-4 chance the contract will be in the money at expiration.

Taking a step back, options traders have shown a propensity toward bearish bets over bullish in recent weeks. MU's 10-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) registers at 0.86 -- or just 2 percentage points from a 12-month peak.

Despite today's pullback, shares of Micron Technology, Inc. (NASDAQ:MU) have added nearly 22% on a year-over-year basis. Should the stock bounce from underfoot support and resume its longer-term uptrend, a capitulation among bearish bettors could result in tailwinds.

Daily Chart of MU since January 2015


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!




Rainmaker Ads CGI