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Wednesday’s Vital Data: Micron Technology, Inc. (MU), Cisco Systems, Inc (CSCO) and Twitter Inc (TWTR)

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U.S. stock futures are mixed this morning, as Wall Street digests the latest comments from Federal Reserve Chairwoman Janet Yellen. Before the Senate Banking Committee yesterday, Yellen offered an upbeat view of the U.S. economy and said that the Fed could raise rates sooner than later. Yellen will offer additional commentary later this morning before the House Financial Services panel.

Monday’s Vital Data: Apple Inc. (AAPL), Facebook Inc (FB) and Alibaba Group Holding Ltd (BABA)

On the options front, volume came in average heading into the weekend, as about 13.2 million calls and 12.9 million puts changing hands. On the CBOE, the single-session equity put/call volume ratio ticked higher to 0.67, while the 10-day moving average held at 0.61.

Heading into the open, futures on the Dow Jones Industrial Average have added 0.01%, with Nasdaq-100 futures down 0.18% and S&P 500 futures off 0.2%.

On the options front, volume remained well above average on Tuesday. Overall, roughly 16.9 million calls and 14.1 million puts changed hands on the session. Over on the CBOE, the single-session equity put/call volume ratio plunged to a three-month low of 0.53, sending the 10-day moving average diving to a one-month low of 0.66.

Turning to Tuesday's volume leaders, Micron Technology, Inc. (NASDAQ: MU ) saw call volume ramp up considerably after reports that it is seeking buyers for its NOR flash memory business. Elsewhere, Cisco Systems, Inc. (NASDAQ: CSCO ) attracted a flood of call volume heading into tonight's quarterly earnings report, and Twitter Inc (NYSE: TWTR ) rebounded sharply from post-earnings lows amid news that CEO Jack Dorsey bought roughly $7 million in TWTR stock during the recent plunge.

Micron Technology, Inc. (MU)

After helping to lead the semiconductor sector to record gains in 2016, MU stock is having a bit of trouble moving higher so far in 2017. The shares are up a mere 5.5% year-to-date after being rejected by resistance near $25. But Micron is still on the warpath in the chip sector, with reports surfacing yesterday that the company is looking to sell its NOR flash business in a move to focus on the more-profitable DRAM and 3D NAND flash markets.

While MU stock dipped more than 3% on the news - investors appear worried about market saturation in the memory market - the long-term outlook for Micron should improve with the sale. It may have been this logic that pushed MU options traders heavily toward calls yesterday, as these typically bullish bets made up 76% of the more than 292,000 MU options contracts traded.

Looking out to the March series, MU options traders remain heavily bullish on the stock. Currently, the March put/call open interest ratio rests at 0.69, with calls easily outnumbering puts. That said, peak March call OI totals more than 21,000 contracts at the $25 strike, and could create some headwinds for the shares on any breakout attempts.

Cisco Systems, Inc. (CSCO)

Blue-chip networking giant Cisco Systems steps into the earnings confessional after the close today, with Wall Street looking for a profit of 56 cents per share on revenue of $11.55 billion. Cisco has made significant strides in networking cloud services in prior quarters, and another solid push in this market could be a much needed shot in the arm for the shares - especially with CSCO stock flirting with key resistance in the $32 region.

CSCO options traders have sided with the bulls ahead of tonight's report, with calls making up 66% of the more than 260,000 contracts traded on Tuesday. However, taking a closer look reveals that one trader opened a neutral-to-bullish calendar spread at the April $31 and October $33 strikes, according to Trade-Alert.com .

This spread went off at the ask of 15 cents, or $15 per contract, and benefits from declining implieds in the wake of Cisco's quarterly report - so long as the stock doesn't rocket too far above $33 over the short-term and the trader isn't assigned prior to expiration.

Twitter Inc (TWTR)

Bargain hunting is the name of the game for TWTR stock this week, and the shares rebounded some 4.5% yesterday after bottoming near $15.50 in the wake of an abysmal quarterly earnings report. Helping to push TWTR higher was none other than CEO Jack Dorsey, who snapped up roughly $7 million in TWTR stock at prices ranging from $15.84 to $16.60 per share beginning on Monday, per an SEC filing.

TWTR options traders joined in the ride, sending 270,000 contracts across the tape, 62% of which were of the call variety. What's more, options traders still have a rather bullish short-term outlook for TWTR stock, with the March put/call OI ratio coming in at 0.59.

The hottest March option strike for TWTR is the $20 call, where more than 47,000 contracts are currently open. This seems more than a touch optimistic, as TWTR stock hasn't traded north of $20 since October.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.

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The post Wednesday's Vital Data: Micron Technology, Inc. (MU), Cisco Systems, Inc (CSCO) and Twitter Inc (TWTR) appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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