Dan Nathan Sees Unusual Options Activity In Micron Technology, Inc.

, Dan Nathan spoke about unusually high options activity in

a day ahead of the date when the company is due to report earnings. Daily options volume was 1.5 times higher than the average daily volume and calls outnumbered puts two to one. When the stock traded at $34 a trader sold to close 3,700 contracts of the January 35 calls for $0.96 and rolled over the position by purchasing 3,700 contracts of the July 35 calls for $3.65. The break even for the trade is at $38.65 or approximately 14 percent higher on July expiration, explained Nathan. He added that

is a market leader with a lot of hedge funds behind it. Nathan said that the stock is cheap with double digit earnings and sales growth numbers. Technically, the stock has been consolidating lately and it has been struggling to break $35, showed Nathan on a chart.