Chipmaker Micron Technology (MU) is eyeing its first close above the 40-day moving average since late February, after bouncing off a pullback to the $53 region earlier this month. The shares sport a 20% year-to-date gain ahead of the company’s second-quarter financial report, which is due out after the close on Tuesday, March 28.
Refinitiv Eikon
As far as post-earnings reactions are concerned, Micron Technology stock has a generally negative history. The shares have finished five sessions lower, including a 5.7% drop following their August 2021 report. In the past two years, MU averaged a move of 4.1%, regardless of direction, but the options pits are pricing in a bigger swing of 8.9% this time around.
Short-term options traders have been much more pessimistic than usual. This is per the equity’s Schaeffer’s put/call open interest ratio (SOIR) of 1.49 that ranks in the 95th percentile of its annual readings. Echoing this, MU’s 10-day put/call volume ratio of 2 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 96% of readings from the past year.
