35,000 MU March 10 calls were purchased for 1.02 against 70,000 MU March 12 calls sold 70,000 at .35.?
Micron Technology Inc., trading 9.90 (down .27) with an IV30 of 83.60 and an HV10 of 82.70, saw a large 1 by 2 call spread today.? The stock, with OI of 1,286,000 and ADV of 56,000 contracts, saw a trader buy 35,000 of the March 10 calls paying 1.02 then against the 10 calls the trader sold 70,000 of the March 12 calls at .35.? This trade resulted in the 10/12 1 by 2 call spread for a net debit of .32.?
The trader is hoping that between now and March expiration MU slowly moves toward $12.? If that happens the trader will be in line to make 1.68/spread, times 35,000.? A nice win.? If the underlying moves above 13.68 the trader will be in a position to start to lose again.? Thus a hard move would be a problem for this trade.
This spread should be considered mildly bullish the underlying and bearish volatility.