After a week of up and down stock prices space x And Federal Reserve Chairman Kevin Warsh’s debut will give investors a new read on developments in the semiconductor sector, which remains at the heart of the bull market.
Tuesday, AI chip maker cerebrum Financial results are scheduled to be announced after the bell, the first for the company since going public last month. The stock is down about 30% since its first day of trading, and post-report options suggest an 11.5% increase. Wednesday is micron It’s a key test for stocks, emblematic of an explosive rally in some memorable stocks fueled by expensive call buying in the options market.
Micron’s implied volatility is 116, the highest in the S&P 500. sandisk and western digital. Traders were expecting a 10% move, which would be the biggest implied gain move since December 2024. Shares rose nearly 6% on Monday to $1,204 per share, for a year-to-date gain of 280%.
Micron’s options trading volume on Monday was balanced by about the same number of calls as puts, but call premiums accounted for $2.6 billion of the $3.3 billion in options trading volume, according to Spot Gamma.
The largest single call contract traded on Monday’s market was a $61 million purchase of 800 shares of a 430-strike Micron call expiring on July 17, a deep-in-the-money bullish position that trades like a long stock. Because Micron’s implied volatility is so high, the in-the-money contract will be less susceptible to the standard decline in volatility following an earnings event.
Micron since the beginning of the year
Indeed, there have been many record-breaking call sales at Micron. Round Hill Memory ETF (DRAM)There were 34,000 sales compared to just under 20,000 sales on Monday, according to ThinkOrSwim data.
Traders may want to take note of perhaps the most bullish option positioning centered around AI. super microcomputer – Shares rose 16% after the company announced plans for its next data center. Nvidia Construction and bull calls are pouring in.
According to ThinkOrSwim, more than 320,000 calls were traded on SMCI, but only 64,000 puts, with traders buying nearly 10 times more calls than puts. At the time of writing, the most popular contract by volume is the 40-strike call expiring on Friday, with more than 24,000 contracts traded, according to Spot Gamma.
