$MU Further to Fall - Bearish Options Activity
$MU Micron - Some significant bearish put options activity yesterday far out in time contracts deep in the money.
- 15k $40.00 strike June'2020 put options traded vs OI under 2k for $18M in premium
- 10k $45.00 strike January'2021 put options traded vs OI of 4.1k for $16M in premium
If both trades were the same fund it's possible this was another diagonal calendar put spread similar to some others we've seen this week, buying the 2021 puts at the higher strike with higher delta and selling the 2020 puts at lower strike with lower delta. These creative variations of options strategies can be very interesting.
Looking at the long term weekly chart I see two possible targets assuming current downtrend continues:
Near term - $27.00 (by mid January)
Medium term - $21.50 (by next ER late March)
Note: Informational analysis, not investment advice.
- 15k $40.00 strike June'2020 put options traded vs OI under 2k for $18M in premium
- 10k $45.00 strike January'2021 put options traded vs OI of 4.1k for $16M in premium
If both trades were the same fund it's possible this was another diagonal calendar put spread similar to some others we've seen this week, buying the 2021 puts at the higher strike with higher delta and selling the 2020 puts at lower strike with lower delta. These creative variations of options strategies can be very interesting.
Looking at the long term weekly chart I see two possible targets assuming current downtrend continues:
Near term - $27.00 (by mid January)
Medium term - $21.50 (by next ER late March)
Note: Informational analysis, not investment advice.
Comment:
Note that on the weekly chart we broke below the 200d ema last week = very bearish....all moving averages now heading south.