Traders are turning bullish on Micron as the memory-chip maker tries to rebound from multi-year lows.
More than 10,000 December 7 calls changed hands in a strong buying pattern yesterday, most of them going for $0.08, optionMONSTER's Heat Seeker system shows. The volume was more than triple the strike's open interest at the beginning of the day, indicating new positions.
MU rose 2.28 percent to $5.84 yesterday, just above its 50-day moving average. Shares closed at $5.17 on Oct. 24, only pennies above its lowest close since July 2009, but have been grinding their way higher since.
The call buyers are looking for MU to gain roughly 21 percent by expiration on Dec. 21. The traders could sell those options earlier at a profit if the stock rallies before then, but the calls will expire worthless if the shares don't move. (See our Education section)
Total option volume in the name was nearly double its daily average. Calls outnumbered puts by more than 7.5 to 1.
Micron has not scheduled its next earnings report, but some analysts are expecting it to release results in early December. Until then, Micron is scheduled to present at a barrage of industry events this month.
Among the venues are the Wells Fargo Securities Tech, Media & Telecom Conference tomorrow, the Daiwa Investment Conference on Nov. 14, the Needham HDD/Flash Memory & Systems Conference also on Nov. 14, the J.P. Morgan Boston Tech 1x1 Corporate Access Day on Nov. 15, and the Credit Suisse Annual Technology Conference on Nov. 28.
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