Bonawyn Eison Sees Unusual Options Activity In Micron

Bonawyn Eison spoke on CNBC's "Options Action" about unusually high options activity in Micron Technology, Inc. MU. He said calls outpaced puts by about 3 to 1 on Monday after being as high as 4 to 1 earlier in the session.

The company is scheduled to report earnings on Jan. 7 and the options market is implying a move of 9% in either direction between now and the end of the month, compared to an average move of 5% over the last eight quarters.

During the session, Eison noticed a purchase of 10,000 contracts of the January $85 calls for 85 cents. The trade breaks even at $85.85 or around 16% above the closing price on Monday.