Micron Options Positioned Bullish Into Wednesday Earnings — SkimNews
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- Micron options traders positioned bullishly into Wednesday's after-the-bell earnings, with roughly 61,000 calls bought versus 37,000 puts Tuesday and 75% of the $1.6 billion in traded premium tied to calls, per Cboe LiveVol and SpotGamma data.
- Market-makers are pricing a roughly 7% post-earnings move for Micron, slightly below the stock's four-quarter average move of 8%.
- Micron's put-to-call ratio sat near a one-year low as of Monday's close, reflecting "universally bullish dealer positioning," according to Volland founder Jason DeLorenzo.
- Open interest in Micron puts between the 980 and 1,000 strikes — including 34,000 open puts at the 1,000 level per Opti-View — would trigger protective-position profit-taking and provide stock support if earnings disappoint, per DeLorenzo; the most popular call strike sits at 1,200 and he noted "if 1,150 breaks, 1,300 will not be far behind."
- Bond prices are selling off at the fastest rate all year on the 14-day RSI for the iShares 20+ Year Treasury Bond ETF (TLT), with TheoTrade cofounder Don Kaufman warning the AI trade "could get rocked by the bond market."
Why it matters: Micron's earnings land three months after the Situational Awareness hedge fund blow-up 'sent a chill' through AI stocks, with Volland's DeLorenzo calling dealer positioning 'universally bullish.' The bond market's fastest sell-off of the year poses the biggest threat to that setup, per TheoTrade's Kaufman.
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