Micron Technology closed at $829.50, up 0.79%.
Massive options flow swept through Micron on Tuesday, with a $17.20 million bull put spread anchoring a decidedly bullish session. The trade dominated the tape, easily overshadowing a $3.56 million deep-out-of-the-money put purchase that appeared to be a long-dated tail-risk hedge rather than a directional bet.
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Options Indicators
MU’s implied volatility stands at 93.29%, and with an IV percentile of 76.89%, current option volatility is in the elevated zone, indicating that options are priced expensively versus their own recent history. At the same time, the IV/HV ratio of 0.86 suggests implied volatility is sitting somewhat below realized volatility, but overall the percentile reading still points to a market where option premiums are on the rich side rather than cheap. The Call/Put volume ratio is 1.55.
Large Trades
A bull put spread worth $17.20 million was the largest displayed trade, structured by selling 1,080 August 21, 2026 $880.00 puts and buying 1,080 August 21, 2026 $800.00 puts. With MU referenced at $829.50, the short $880.00 put was in the money while the long $800.00 put was out of the money. This is a bullish credit spread designed to generate income while expressing the view that downside risk will remain contained over time. Using the provided leg premiums, the trade collected $11.05 million from the short put and paid $6.14 million for the long put, resulting in a net premium received of $4.91 million, which indicates the trader was paid upfront to assume defined downside exposure within the $880.00/$800.00 range.
A PUT buy worth $3.56 million was the other highlighted trade, consisting of 1,982 contracts of the June 17, 2027 $300.00 put purchased outright. With the stock at $829.50, this strike was deeply out of the money at the time of execution, making it a long-dated bearish or tail-risk position rather than a near-term directional bet on modest weakness. The structure suggests the buyer was seeking downside convexity and protection against a severe drawdown over a long horizon, paying premium for leveraged downside exposure if MU were to suffer a major decline.
Overall, the large-trade flow was clearly bullish. The sentiment summary shows bullish premium flow overwhelmingly exceeded bearish flow, and that positive bias was reinforced by the character of the biggest trades: large short-put activity, including the leading bull put spread, points to investors being willing to monetize elevated downside premium and position for MU to stay above key lower strike zones. While there was some bearish protection buying, including the long-dated $300.00 put purchase, it looked more like selective hedging or disaster insurance than a dominant negative view. The broad takeaway is that institutional-sized traders were positioned with a constructive outlook on MU, favoring income-generating bullish structures over aggressive downside speculation.
Strategy Reference
Investors seeking to replicate the bullish sentiment with a low-probability-of-assignment approach may consider selling the August 21, 2026 $800.00 put, which defines the lower bound of the observed bull put spread and sits well below the current price.
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