Options Trader Betting On Further Downside For Micron Stock Heading Into 2023

Micron Technology, Inc. MU is expected to release quarterly earnings results after the closing bell today. Semiconductor stocks, meanwhile, are under pressure this year, with the VanEck Semiconductor ETF SMH nearing the worst year since the 2008 financial crisis.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Micron traded at 1.3x average daily volume on Tuesday.

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The options market is implying a move of around +/-5.7% by the end of the week, higher than the average move of +/- 4%.

There was a buyer of 1,500 of the January 13 weekly 48-puts at an average price of $1.22 per contract, Khouw mentioned.

The trader bet that Micron’s stock will see further downside over the next three weeks.

MU Price Action: Shares of Micron dropped 2% to close at $50.68 in the regular trading session on Tuesday, and rose 0.6% in after-hours trading.

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