Chip Maker Options Spike as Shares Rally
"Fast Money" Contributor
Options activity spiked early Tuesday for Micron Technology, which has been rallying in the face of a dismal outlook in the chip industry.
This morning, right out of the gate, the MU March 4 calls lit up OptionMonster's tracking systems, as buyers jumped in to snap up more than the open interest in one quick trade of 2,500 contracts. These calls are trading for $0.35 and worth watching for any continued interest.
- Micron: Recent Insider Trades
Micron stock was under $2 in December and is now pushing $4, trading above its 50- and 100-day moving averages. That's still less than half of its 52-week high, which was just under $9 last summer.
This space is filled with cannibalism and fierce competition, but inventories are finally contracting a bit as the industry is shrinking.
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Chip Makers & Equippers:
Advanced Micro Devices