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Option Bulls Hopeful on Micron

Micron Technology is trying to shift its business into a broader range of products, and yesterday the options paper turned bullish.

The activity really heated up in December, with the bulk of buyers positioning in the December 5 calls. They first traded for 66 cents, and then more were purchased for 56 cents. About 13,000 traded against previous positioning of 2,191 contracts, so the flow was clearly bullish.

Those calls lock in the price investors must pay to buy Micron shares. As a result, they can double or triple from a relatively small pop in the stock price, but also expire worthless if it fails to move.

Micron shares fell 3.18 percent to $5.16 yesterday and is struggling near the lower end of its 52-week range. CEO Steve Appleton addressed a plan last week to reduce dependence on computer memory chips that can't deliver sustainable profit, going into new markets like mobile devices. It had kept pace with rival SanDisk, until the tide changed last month and now Sandisk is ripping.

More than 42,000 contracts traded in the session, with more than 31,000 of those calls.

—Najarian has no positions in MU.

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.

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