Lighthouse Canton says memory-chip selloff diverges from earnings, flags opportunity to sell elevated volatility
SOXX•HBM demand remains tight
HBM demand remained tight into 2027, with Micron citing about USD 100 billion of locked-in future revenue tied to HBM backlog.
Micron growth and valuation
Micron posted fiscal Q3 revenue growth of 346% year over year and raised guidance. The stock trades on a mid-single to low-double-digit forward P/E.
Positioning and trading approach
Lighthouse Canton linked oversupply fears to a Chinese DRAM entrant and said catalyst risk could come around SK Hynix results.
Its preferred stance was selling elevated single-name volatility via put-selling, put spreads and covered calls rather than trying to time a bottom.
Selloff seen diverging from earnings
Lighthouse Canton flagged a sharp selloff in memory-chip stocks despite continued beat-and-raise earnings across Micron, SanDisk, Western Digital and SK Hynix.
The firm said the pullback looked more like a positioning unwind than a change in fundamentals.
