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Chip stocks on the rise: Is buying in still a smart move?
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Micron's Call Options Attract Financial Giants as Stock Reaches All-Time High

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Luzi Ann Santos joined discussion · Jun 17 13:58
Micron Technology's continued ascent to an all-time high is also boosting the stock's call options, attracting financial giants.
Block trades with combined premiums of $8.7 million in Micron call options were posted Monday amid stock's runup to a record. The biggest of them involved a short call position where the seller stands to collect a premium of $2.8 million for writing options that give the holder the right to buy 200,000 Micron shares at $155 each by Oct. 18.
The block trade for 2,000 call options was executed near the bid price, signaling a bearish leaning, data compiled by moomoo showed. The price of the contract rose 32% to $16.75 a share as of 2:10 p.m., as the stock rallied.
Source: moomoo PC app
Source: moomoo PC app
Shares advanced as Bank of America Global Research analyst Vivek Arya reportedly named Micron as the "top U.S. memory company" and raised the price target on the stock to $170m, from $144.
Arya noted the expected surge in demand for memory as $Dell Technologies(DELL.US)$, $HP Inc(HPQ.US)$, $LENOVO N3207(05382.HK)$, and other hardware companies roll out artificial intelligence-powered personal computers, Barron's reported.
More than 268,000 Micron options changed hands as of 2:29 p.m., landing the company in the ninth slot most active stock options, behind Nvidia, $Tesla(TSLA.US)$, $Apple(AAPL.US)$, $GameStop(GME.US)$, Advanced Micro Devices, $Palantir(PLTR.US)$, $Amazon(AMZN.US)$ and $Microsoft(MSFT.US)$.  
Source: moomoo PC app
Source: moomoo PC app
While Micron's options volume is driven by the stock's investment appeal, $Advanced Micro Devices(AMD.US)$'s increased trading was driven by the stock's sell-off.
More than 565,000 AMD options traded as of 2:50 p.m. in New York, as shares shares slipped 0.5%. The stock has fallen over the past week after Morgan Stanley downgraded the chip maker to equalweight or neutral from overweight, noting that investor expectations for the company's AI business seems "too high." Morgan Stanley noted that the stock's recent surge made AMD expensive, compared to its peers $NVIDIA(NVDA.US)$ and $Broadcom(AVGO.US)$.
Nvidia trades at 77 times trailing earnings, while Broadcom has a price/earnings ratio of 79. AMD's PE ratio is 230.
To see AMD's options chain, click here.
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