{"id":63040,"date":"2025-01-29T02:00:49","date_gmt":"2025-01-29T07:00:49","guid":{"rendered":"https:\/\/www.tradestation.com\/insights\/?p=63040"},"modified":"2025-01-29T08:38:18","modified_gmt":"2025-01-29T13:38:18","slug":"option-alert-micron-call-spread","status":"publish","type":"post","link":"https:\/\/www.tradestation.com\/insights\/2025\/01\/29\/option-alert-micron-call-spread\/","title":{"rendered":"Option Alert: Can Micron Rebound?"},"content":{"rendered":"<p>Micron Technology has struggled along with other chip stocks lately, but one trader is positioning for a rebound.<\/p>\n<p>Check out this unusual options activity yesterday:<\/p>\n<ul>\n<li>17,000 July 120 calls were purchased for $3.80.<\/li>\n<li>17,000 July 130 calls were sold for $2.54.<\/li>\n<li>Volume was more than 4 times open interest in both contracts, which suggests new positions were implemented in both.<\/li>\n<li>The net cost was $1.26.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.tradestation.com\/insights\/2024\/05\/12\/the-basics-of-options\/\">Calls<\/a> fix the level where investors can purchase a security. They can appreciate when stocks rally but become worthless if prices don\u2019t reach the strike price on expiration. Traders can also sell them to generate credit. Tuesday&#8217;s trade was apparently a <a href=\"https:\/\/www.tradestation.com\/insights\/2024\/05\/08\/bullish-and-bearish-key-points-about-vertical-option-spreads\/\">vertical spread<\/a>, which combines buying and selling options to limit cost.<\/p>\n<div id=\"attachment_63061\" style=\"width: 1034px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-63061\" class=\"wp-image-63061 size-large\" src=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/MU_20250128-1024x494.jpg\" alt=\"\" width=\"1024\" height=\"494\" srcset=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/MU_20250128-1024x494.jpg 1024w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/MU_20250128-300x145.jpg 300w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/MU_20250128-768x370.jpg 768w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/MU_20250128-1536x741.jpg 1536w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/MU_20250128-1080x521.jpg 1080w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/MU_20250128.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><p id=\"caption-attachment-63061\" class=\"wp-caption-text\"><em>Micron Technology (MU), daily chart, showing key indicators and patterns.<\/em><\/p><\/div>\n<p>The position can expand to $10 if the memory-chip maker closes at $130 or higher on expiration. That&#8217;s a potential profit of 694 percent (based on the $1.26 outlay) from the stock climbing 47 percent by July 18.<\/p>\n<p>MU fell 3.1 percent to $88.25 yesterday but is up about 5 percent so far this year. The shares have been stuck in a range between roughly $80 and $110 since August. They peaked above $150 last summer, but fell along with the broader semiconductor industry on worries about trade restrictions.<\/p>\n<p>Tuesday&#8217;s vertical spread effectively targets a rebound toward MU&#8217;s levels before the crash. The strategy also covers two earnings reports, which could potentially trigger rebounds.<\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n<p><em>Options trading is not suitable for all investors. Your TradeStation Securities\u2019 account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See\u00a0<a href=\"https:\/\/www.theocc.com\/Company-Information\/Documents-and-Archives\/Options-Disclosure-Document\">www.TradeStation.com\/DisclosureOptions<\/a>. Visit\u00a0<a href=\"http:\/\/www.tradestation.com\/Pricing\">www.TradeStation.com\/Pricing<\/a>\u00a0for full details on the costs and fees associated with options.<\/em><\/p>\n<p><em>Margin trading involves risks, and it is important that you fully understand those risks before trading on margin. The Margin Disclosure Statement outlines many of those risks, including that you can lose more funds than you deposit in your margin account; your brokerage firm can force the sale of securities in your account; your brokerage firm can sell your securities without contacting you; and you are not entitled to an extension of time on a margin call. Review the\u00a0Margin Disclosure Statement at\u00a0<a href=\"https:\/\/uploads.tradestation.com\/uploads\/margin-disclosure-statement.pdf\">www.TradeStation.com\/DisclosureMargin<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Micron Technology has struggled along with other chip stocks lately, but one trader is positioning for a rebound. Check out this unusual options activity yesterday: 17,000 July 120 calls were purchased for $3.80. 17,000 July 130 calls were sold for $2.54. Volume was more than 4 times open interest in both contracts, which suggests new [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":63042,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[14,30],"tags":[174],"class_list":["post-63040","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-options","category-technology","tag-mu","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Option Alert: Can Micron Rebound? | Market Insights<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tradestation.com\/insights\/2025\/01\/29\/option-alert-micron-call-spread\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Option Alert: Can Micron Rebound? | Market Insights\" \/>\n<meta property=\"og:description\" content=\"Micron Technology has struggled along with other chip stocks lately, but one trader is positioning for a rebound. Check out this unusual options activity yesterday: 17,000 July 120 calls were purchased for $3.80. 17,000 July 130 calls were sold for $2.54. Volume was more than 4 times open interest in both contracts, which suggests new [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tradestation.com\/insights\/2025\/01\/29\/option-alert-micron-call-spread\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Insights\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/TradeStation\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-01-29T07:00:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-29T13:38:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/memory_chips_semiconductors_BTT_856229004.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"David Russell\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@TradeStation\" \/>\n<meta name=\"twitter:site\" content=\"@TradeStation\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"David Russell\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/01\/29\/option-alert-micron-call-spread\/\",\"url\":\"https:\/\/www.tradestation.com\/insights\/2025\/01\/29\/option-alert-micron-call-spread\/\",\"name\":\"Option Alert: Can Micron Rebound? | Market Insights\",\"isPartOf\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/01\/29\/option-alert-micron-call-spread\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/01\/29\/option-alert-micron-call-spread\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/memory_chips_semiconductors_BTT_856229004.jpg\",\"datePublished\":\"2025-01-29T07:00:49+00:00\",\"dateModified\":\"2025-01-29T13:38:18+00:00\",\"author\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/#\/schema\/person\/d2279ba57f90e3b47887f2503ce142d4\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/01\/29\/option-alert-micron-call-spread\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.tradestation.com\/insights\/2025\/01\/29\/option-alert-micron-call-spread\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/01\/29\/option-alert-micron-call-spread\/#primaryimage\",\"url\":\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/memory_chips_semiconductors_BTT_856229004.jpg\",\"contentUrl\":\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/memory_chips_semiconductors_BTT_856229004.jpg\",\"width\":1920,\"height\":1080},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/2025\/01\/29\/option-alert-micron-call-spread\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.tradestation.com\/insights\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Option Alert: Can Micron Rebound?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/#website\",\"url\":\"https:\/\/www.tradestation.com\/insights\/\",\"name\":\"Market Insights\",\"description\":\"Fresh market commentary and actionable trade ideas.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.tradestation.com\/insights\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/#\/schema\/person\/d2279ba57f90e3b47887f2503ce142d4\",\"name\":\"David Russell\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tradestation.com\/insights\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/443bdca82f0006231c5179581e4310ed?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/443bdca82f0006231c5179581e4310ed?s=96&d=mm&r=pg\",\"caption\":\"David Russell\"},\"description\":\"David Russell is Global Head of Market Strategy at TradeStation. 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