Micron (MU) with relative strength and high options volume today after the company agreed to expand a NAND Flash Memory joint venture with Intel. Micron shares are up 40 cents to $8.96 Tuesday and at multi-month highs after a three-day 14.7 percent winning run higher. 32.4 million Micron shares traded, which is more than 3X the typical volume. Meanwhile, 40,000 calls and 9,600 puts traded on the chipmaker. The flow is scattered, with Mar 10, Jan 12.5 and Mar 9 calls at the top of the most actives. Levels of implied volatiity in MU are moving up 5 percent to 49.5, as upside call buyers seem to be dominating the flow and looking for further gains in Micron in the weeks/months ahead. Earnings will come into play around Mar 21.
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.