Micron ‘Straddles’ Looking for Huge Move After Earnings

Micron Technology Inc. investors should expect to be surprised when the company reports earnings, as the options market is preparing for a bigger-than-average post-results reaction in the stock.

The memory-chip maker MU, -3.09%  is scheduled to report fiscal second-quarter results after Thursday’s closing bell. Investor and analyst expectations appear to be running relatively high, as six analysts surveyed by FactSet have raised their stock-price targets in the past week while only one has trimmed their target.

And the stock, which is already the PHLX Semiconductor Index’s SOX, -2.47%  best performing component this year, as well as over the past 12 months, has gained 2.1% the past week while the chip-sector tracker (SOX) has lost 1.8% and the S&P 500 indexSPX, -1.70%  has shed 2.1%. It closed Tuesday at the highest level since September 2000.

On Thursday, Micron shares shed 1.6% in morning trade.

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Micron Technology Inc. investors should expect to be surprised when the company reports earnings, as the options market is preparing for a bigger-than-average post-results reaction in the stock.

The memory-chip maker MU, -3.09%  is scheduled to report fiscal second-quarter results after Thursday’s closing bell. Investor and analyst expectations appear to be running relatively high, as six analysts surveyed by FactSet have raised their stock-price targets in the past week while only one has trimmed their target. Read a Micron’s earnings preview.

And the stock, which is already the PHLX Semiconductor Index’s SOX, -2.47%  best performing component this year, as well as over the past 12 months, has gained 2.1% the past week while the chip-sector tracker (SOX) has lost 1.8% and the S&P 500 indexSPX, -1.70%  has shed 2.1%. It closed Tuesday at the highest level since September 2000.

On Thursday, Micron shares shed 1.6% in morning trade.

— The Option Specialist

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