Why Someone Just Bought $19.4M in Micron Puts

Why It Matters

The $19.4 M put purchase flags potential downside pressure on Micron ahead of its earnings, suggesting that even bullish analysts may be hedging against a sharp correction in a high‑volatility AI chip play.

Key Takeaways

• $19.4M in Micron puts bought despite recent 11% rally.
• Traders targeting $1,000 and $870 strikes, July 2025 expiration.
• Puts are 8% and 20% out‑of‑the‑money, indicating tail‑risk bets.
• Earnings due June 24; analysts raised price targets to $1,200‑$1,600.
• Large open‑interest surge suggests hedging or speculative downside play.

Summary

The video dissects a $19.4 million purchase of Micron Technology (MU) put options that appeared on the options tape as the stock surged nearly 11 % toward its all‑time highs.

The trader bought July 2025 contracts at the $1,000 strike (≈8 % OTM) and the $870 strike (≈20 % OTM), paying roughly $9,750 and $4,600 respectively. Open‑interest on the $1,000 line jumped by about 1,000 contracts in a single day, while the $870 series added 700 contracts, indicating a coordinated “spray” trade across multiple lot sizes.

Hosts note that Micron’s recent volatility—e.g., a drop from $1,089 to $864 in two days—makes such tail‑risk bets plausible. They also cite analyst upgrades (TD Cowen to $1,500, RBC to $1,200, UBS to $1,625) and an upcoming earnings report on June 24, where revenue is expected to jump 263 % YoY.

The activity could be a hedge for a large long position or a speculative play betting on a post‑earnings pullback. Either way, the sizable put buying signals that some market participants see downside risk despite bullish sentiment, a warning for investors in AI‑related semiconductor stocks.

Original Description

Micron is at all-time highs. Someone just bought $19.4 million in puts. Two trades. Two strikes. Both expiring after earnings on June 24th.

The first trade targets the $1,000 strike about 8 percent out of the money. The second targets $870 about 20 percent out of the money. That is a tail risk bet. And it is not crazy. On June 3rd Micron went from $1,089 to $864 in two days. The street is raising targets to $1,625. Revenue expected up 263 percent year over year. EPS up 665 percent. Forward PE still below 10. Someone sees that and still pays nearly $20 million to bet it comes down. Signal or noise?

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Chapters

0:00 Micron at all-time highs and someone bought $19.4M in puts

0:45 Street raising targets: UBS $1,625 TD Cowen $1,500

1:09 Trade one: $1,000 puts 8 percent out of the money

1:47 Spray trade mechanics: 59 lots all on the ask

3:24 Trade two: $870 puts 20 percent out of the money

4:03 Micron dropped from $1,089 to $864 in two days in June

4:29 Why you pay this much premium on a volatile stock

5:08 Earnings June 24th: why these puts expire after the report

5:33 Revenue up 263 percent EPS up 665 percent PE below 10

6:05 Jermal's verdict: the beginning of a signal

#Micron #OptionsTrading #SignalVsNoise #tastylive #PutOptions #AIStocks #MicronEarnings #SmartMoney

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