The million-dollar bet on Micron earnings

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Options Action: Blowout earnings for MU?

Micron Technology shares were falling Tuesday ahead of the company's fiscal first-quarter earnings report scheduled for after the bell. The chipmaker is down nearly 5 percent this year, but some traders are betting that it could soon soar.

On Monday, when Micron options volume ran 1.5 times its daily average, and the number of calls traded were double that of puts, one trader rolled a bullish bet on the company.

Specifically, the trader sold 3,700 January 35-strike calls and used the proceeds to buy 3,700 of the July 35-strike calls for $3.65. The trade, which cost a total of more than $1 million, is a bet that Micron shares will surge above $38.65 per share by July expiration, or up another 17 percent from current levels. That would also be a more than 10-year high.