Is Micron Technology, Inc. (MU) Headed Even Lower?

Micron Technology, Inc. (MU) bears foresee a move south of $26

by

Published on Mar 23, 2015 at 10:30 AM
Updated on Apr 20, 2015 at 5:32 PM

Micron Technology, Inc. (NASDAQ:MU) is sitting 0.8% lower this morning at $28.44, bringing its year-to-date deficit close to 19%. Options traders are responding, too, with puts crossing the tape at double the usual intraday rate.

One of MU's most active options is the April 26 put, where it seems buy-to-open activity is transpiring. By initiating these out-of-the-money positions, traders are expressing confidence the stock will breach $26 by the close on Friday, April 17, when the newly front-month series expires.

On the charts, however, MU hasn't traded below $26 in almost a year. As such, delta on the put sits at negative 0.20, signifying a slim 1-in-5 chance the option will be in the money at expiration.

Today's accelerated put activity is business as usual for Micron Technology, Inc. (NASDAQ:MU). The stock's 10-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 0.52, which ranks in the 84th percentile of its annual range.

Daily Chart of MU since March 2014


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