Retail Traders Boost Put Activity on Micron as Memory Supercycle Emerges
MU•Charles Schwab reports retail traders sold heavy volumes of puts on Micron during May while also engaging in upside call buying alongside bets on Nvidia as options adoption rose. Analysts highlight a memory-chip supercycle fueled by surging AI and data center demand for DRAM and NAND, boosting Micron's outlook.
1. Options Adoption Rises Among Retail Traders
Retail traders have significantly increased options activity on high-flying memory chip firms such as Micron, using put selling and targeted call purchases to gain exposure without full equity positions.
2. Put Selling and Call Buying Trends
Data indicates heavy put selling on Micron during May, complemented by upside call buying alongside bets on AI leaders like Nvidia, reflecting a strategy to optimize portfolio allocations while navigating market inflection points.
3. Memory-Chip Supercycle Drivers
Strong demand for AI workloads and data center expansion has triggered a memory-chip supercycle, with DRAM and NAND revenues poised to rise sharply as enterprise spending on infrastructure accelerates.
4. Implications for Micron's Outlook
These trends suggest potential upside for Micron's revenue and margins, as increased derivatives activity may amplify stock volatility and a sustained supercycle could drive earnings growth.
