Micron Technology (NASDAQ:MU) shares are down 2.3% to trade at $390.36 at last glance, following news that Samsung is preparing to supply Nvidia (NVDA) with next-generation HBM4memory chips as early as next month.
MU is retreating from Friday's record high of $412.43, and could snap a six-day win streak. Despite today's tumble, MU is up a whopping 534.3% from its April 7 low of $61.54 and is trading far above its 60-day moving average, which captured late-November and early December pullbacks.
Short-term options traders have been targeting MU. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.10 that ranks in the 88th percentile of its annual range.
Drilling into today's options activity, so far 85,000 calls and 61,000 puts have exchanged hands. The most popular contract is the weekly 1/30 400-strike call, followed by the 410-strike call in the same series, with positions being opened at both.
It's also worth noting MU's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 90 out of 100. This means the security has tended to exceed option traders' volatility expectations during the past year.
