Unusual Options Activity Alert: Micron Technology (MU) & Riverbed Technology (RVBD)
Riverbed Technology (RVBD)
RVBD is seeing seven times its normal trading volume today, with buyers targeting May and June call options. A total of 29,000 calls have traded by mid-session, compared to only 634 puts.
The stock fell nearly 5% to $13.73 this morning. That puts RVBD dangerously close to its all-time low of $13.60 that was set in September 2006. However, there is no obvious news to explain the volatility in the share price.
RVBD has since rebounded slightly, while at-the-money implied volatility is near 77%. That is an increase from levels near 55% at yesterdayís close. Earnings are due in late April. The company presents at ComputerWorld Storage Networking World conference next week.
Micron Technology (MU)
MU call options are seeing significant action for a second day. The chipmaker is due to report earnings after the closing bell. 21 analysts cover MU, with estimates ranging from a $.53 to $.19 quarterly loss. The consensus is a loss of $.36.
MU is up $.44 to $6.44 this morning. Traders are leaning on the bullish side of the trade heading into the earnings release. Volume is already running three times the normal level, with 38,000 calls and 11,000 puts trading on the day.
Much of the options activity involves call buying in the April and May contracts. Sentiment data reveals that nearly 59% of the contract flow consists of customers making bullish upside call purchases.
On Monday, Dow Jones Newswires reported that shares of many memory chip makers were moving higher after some Asian makers were beginning to push clients to pay higher prices for DRAM chips. MU is up nearly 18 percent on the week and both options volume and open interest have been lifting in recent days.
Posted By: Trade Alert
View Frederic Ruffy's post archive >