Micron Technology (NASDAQ:MU) is set to open at a record high this morning, as the chipmaker continues to power the resurgent semiconductor sector. News of possible union strikes at Samsung Electronics -- a major memory chip producer -- would put memory supply in focus, driving Micron's already rabid demand. The shares logged a record close of $746.81 on Friday and are also enjoying the tailwinds from a price-target hike to $1,000 from $550 at Deutsche Bank.
MU wrapped Friday with its sixth-straight weekly win. Last week's 37.7% pop -- fueled by a 15.5% gap on Friday -- was Micron's best week on record. The stock has staged an incredible bounce off its 120-day moving average from March 31. The rally has sent the shares' 14-Day Relative Strength Index (RSI) all the way up to 85, deep in "overbought" territory.
Short-term options traders could be positioning for a breather. MU's Schaeffer's put/call open interest ratio (SOIR) of 1.27 ranks in the 87th percentile of annual readings.
Options are an intriguing route, per the stock's Schaeffer's Volatility Scorecard (SVS) of 89 (out of 100.) In other words, shares have consistently realized higher volatility than its options have priced in over the past 12 months.
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