Calls keeping stacking up in Micron

Bullish option traders are cashing in as Micron trades at 52-week highs.

On March 21, Investitute’s tracking systems found that 10,000 July $21 calls were purchased for $5.85 with shares at $25.98. The volume was far above the strike’s open interest of 2,372 contracts, showing that this was fresh buying.

Today those calls traded for $11.90, more than doubling in value. The stock rose 26.5 percent in the same period, an impressive gain but still far less than that of the options on a percentage basis.

Long calls lock in the price where the stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

MU closed today up 2.43 percent to $32.50. The memory-chip maker hit a 52-week high of $32.96 this morning following bullish notes from analysts at several firms, including Wells Fargo, Stifel, and Cowen.