Micron Technology is consolidating after a nice move, and the
bulls are back for more.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 32,000 October 12 calls in a single block for $0.34.
Volume exceeded open interest of 26,290 contracts, indicating that
a new position was initiated. Barely a minute later, 10,600 October
9 puts were sold for $0.99 and an equal number of October 7 puts
were bought for $0.35.
Given their closeness in time and similar expirations, it is likely
that the trades were part of a single bullish strategy. Selling the
generated income to help finance a
bullish upside bet
in the calls, lowering their cost to about $0.13 per contract. The
investor now stands to benefit from massive leverage on a push
higher with hedged downside exposure. (See our
MU is down 2.6 percent to $9.18 in afternoon trading but is up 45
percent so far this year. The maker of memory chips reported
better-than-expected revenue in March and said that demand was
improving. Shares have been consolidating since, making
incrementally higher lows above their 2012 peaks, which could be
leading some chart watchers to believe that Micro is poised for
Even if the today's two transactions were done by different
investors, both reflect positive sentiment toward the stock. The
activity pushed total option volume to more than triple the daily
average so far in the session, according to the Heat Seeker.
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