Semiconductor companies have continued to fight back as the market tries to rebound, and yesterday chipmaker Micron Technology saw upside option activity.
A block of 14,900 Oct. 7 calls hit OptionMonster's tracking systems not long after the market opened, purchased for 39 cents. The same number of Sept. 6 calls was sold at the same time for 41 cents against open interest, which suggests that an existing long position was rolled from one strike to the other.
The move allowed the investor to collect a credit of 2 cents and stay long the name for an additional month at the higher strike. It's consistent with a belief that MU still has significant upside potential after losing half its value between April and early last month.
MU rose 3.05 percent Thursday to close at $6.25. It has gained as much as 9 percent at one point in the session.
Rolling the calls now will help the trader avoid the accelerating pace of time decay that will occur in the September contracts over the next week.
Overall option volume in the stock was triple the daily average, with calls outnumbering puts by almost 4 to 1.
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David Russell is a reporter and writer for .