Micron has been on a fissure this year, and some traders say the chip stock is about to rip fifty-fifty higher.
With the semiconductor company reporting earnings after the close up bell on Thursday, the options market is implying a 7 percent move in either charge instructions for the stock. According to Mike Khouw of Optimize Advisors, the move could be higher.
“Micron is a big name that typically moves a decent amount on earnings, around 6 percent, but it’s betokening a larger move than that this time,” Khouw chance Wednesday on CNBC’s “Fast Money.”
Khouw noted there was a up in bullish trading activity for the chip stock with call way outs quadrupling that of puts. A number of traders also bought the March weekly 63 hails for an average price of $1.50 per contract. These are bullish bets the selection will close the week above $64.50, or roughly 9 percent excited than where the stock is currently trading. Khouw noted some investors also bet on longer-term dial spreads for Micron, which imply the stock could rally beyond everything $65 next month.
Shares of Micron have surged varied than 48 percent since January and over 134 percent in the abide 12 months. Also worth noting: 25 of the 31 FactSet-listed analysts rating the stock as a buy, with an average price target of $67.85. That drive imply a 13 percent rally from current levels.
Persist month, Micron raised its earnings and revenue guidance for the second clemency resulting in a near 8 percent gain on the day.
Micron was trading at $58.73 on Thursday morning, down 2.3 percent.