Micron Options Signal 8%-9% Swing with Strong $500 Call Activity
At-the-money straddles imply an 8%-9% price swing to a $430–$510 range by week’s end, with over 16,000 contracts traded at the $500 call strike indicating bullish bets ahead of March 20 earnings. Micron shares climbed premarket toward $473 as investors favor its AI memory products over rival chipmakers.
1. Options Market Pricing
Implied volatility from at-the-money straddles at the $470 strike projects an 8%-9% move in Micron’s share price by options expiry, setting a trading range near $430 to $510. This anticipated swing reflects heightened investor focus on the upcoming March 20 earnings release.
2. Bullish Call Activity
Call volume at the $500 strike surpassed 16,000 contracts traded with roughly 13,000 contracts in open interest, suggesting strong upside convictions. Put option activity remains secondary and appears primarily geared toward portfolio protection rather than outright bearish bets.
3. Share Performance and AI Demand
Micron’s stock rose in premarket trading toward $473, reflecting growing investor confidence as the company’s high-bandwidth memory for AI applications gains preference over competing chipmakers. Market participants will closely watch guidance to see if AI demand continues to surprise on the upside.