Semiconductor giant Micron (MU) has been hovering near all-time highs, even with the recent volatility in tech. One trader sees the potential for a move higher.
That’s based on the April $98 calls. Expiring in 18 days, the trade is a bet that shares will move over 15 percent higher from their current price in the mid-$80 range. Over 11,000 contracts traded against a prior open interest of 116, for a 95-fold rise in volume.
The option buyer paid $0.60 for the trade.
- Man Who Predicted 2008 Crash: “The Mother of All Crashes is Coming”
If you've watched the movie The Big Short,you've heard of Michael Burry. He was one of the few who no only predicated the 2008 crash but profited from it.
He made $750 million for his investors and $100 million personally when his bet against the housing market paid off. His next big prediction?
He's warning the "mother of all crashes" is coming.
If you have any money in the markets, I urge you to click here and get the exact day of the next stock market crash.
Micron shares have gotten into the $95 range in the past few weeks, but a move to the strike price of $98 would be a new high for shares. Shares are up about 85 percent off the pandemic lows.
In the past year, the company has seen revenues rise just 12 percent, although earnings are up nearly 64 percent. The recent chipmaking shortage is likely helping to hold up shares here.
Action to take: While shares may not rally to $95, a move higher in tech in the next week or two could make for a huge return on this low-priced call option. Traders willing to bet on a pop higher should look to get into the trade with mid-double-digit profits in mind—and then look to get out quickly.