Micron Technology's stock fell sharply to $1,023.65 on Monday, an 18% drop from its recent 52-week high, following a fiscal third-quarter earnings report that exceeded analyst expectations. This decline has prompted some options traders to engage in dip-buying, with call options outpacing puts, although more calls were likely sold than bought.
On the same day, the VanEck Semiconductor ETF (SMH) rose by about 3%, buoyed by gains in Seagate Technology and Western Digital, which saw increases of 8% and 10%, respectively, after a positive initiation from Melius Research predicting significant upside for these stocks. In contrast, the SMH ETF's options flow has been predominantly bearish, with put volume significantly exceeding calls.
Traders are also showing interest in the Roundhill Memory ETF (DRAM), where call buying has outpaced puts, although there are signs of waning enthusiasm as more calls are being sold than bought. Overall, the market is experiencing a complex interplay of bullish and bearish sentiments, particularly in the semiconductor space