has been trapped in a slow grind for the last month, but yesterday the bulls stepped in.
OptionMonster’s tracking systems detected unusual activity in the October 7 calls early in the session, with buyers paying $0.30. Shares then rallied, and those options appreciated to as much as $0.38.
Callslock in the price investors must pay to own shares in the memory-chip maker. These options can generate major leverage if the stock rallies, but will expire worthless if it doesn’t move.
Micron Technology shares were little changed when the calls initially hit, but then climbed after Japan’s Nikkei news service reported that the company’s
Activity has built in this name from time to time, and now the stock seems to be bottoming after a long pullback. Micron’s last earnings report on June 20 missed estimates because of weak profit margins, but its shares have refused to break down since then.
Overall option volume in the name was quadruple the daily average, with calls outnumbering putsby more than 3 to 1. There was also bullish activity in Micron Technology’s weekly 6 calls expiring next Friday, as well as in the July 6 and October 6 contracts.
—By CNBC Contributor Pete Najarian
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