Micron Tech (MU) is down 55 cents to $10 and options are seeing heavy trading for a second day. The underlying tone of trading in the chipmaker yesterday was bullish after takeover chatter made the rounds (see 5/16 color). Shares are under pressure today, however, amid weakness in chip names (KLAC, FLEX, ALTR) and 106,000 options traded in Micron so far. 72,000 calls and 34,000 puts changed hands. June 11 calls are the most actives. 11,720 traded and some disappointed investors might be closing out positions opened yesteday when the chatter made the rounds. May 10, May 11, Jul 10 and Jul 11 calls are seeing brisk trading as well. Implied volatality is up 4.5 percent to 46.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.