OPTIONS FLOW$MUMicron Technology, Inc.Open ticker analysis →
A 2-leg, $5.76M options structure landed in $MU on Tuesday, built around the $740 to $835 strikes. The legs lean bearish: the bought side profits as Micron Technology falls, and the sold side helps pay for it.
What happened
The legs printed together midday, around 1:30 p.m. ET on Tuesday, October 13, with $MU near $936.06, for $5.76M in combined premium across 4,496 contracts.
Trading the legs as one ticket locks in the price of the whole structure at once, which is how professional desks usually put on spreads.
Netting the legs, the trader paid about $160K to put the position on. The sold legs mean the risk does not stop at that debit if the stock moves hard against them.
- MU Dec 18 $740 Put: 2,248 contracts at $12.46 (sold)
- MU Nov 6 $835 Put: 2,248 contracts at $13.17 (bought)
Why it matters
Multi-leg trades shape risk on purpose: some legs pay for others, and the payoff depends on where the stock finishes relative to each strike.
Net of all legs, the structure behaves like being short roughly 14,500 shares of MU, about $13.61M of stock exposure.
The strikes run from $740.00 (20.9% below the stock) to $835.00 (10.8% below the stock), so the trade is built around a zone rather than a single target.
With 24 days until Nov 6, the trade has a few weeks to be right, enough room for a catalyst but not much for waiting. Implied volatility ran around 52%, elevated, which means traders are paying up for movement.
Over the last 12 sessions $MU has traded between $929.03 and $1,113.89 and is down 11.8% over that stretch. The stock came into this trade near the bottom of that range.
The numbers
| Structure | Multi-leg options trade (2 legs) |
|---|---|
| Lean | Bearish |
| Expirations | Nov 6 and Dec 18 (nearest in 24 days) |
| Strikes | $740, $835 |
| Contracts | 4,496 |
| Total premium | $5.76M |
| Net cost | $160K debit |
| Stock at the trade | $936.06 |
Three ways this could play out
Bullish continuation
A move through $835.00 puts $MU above every strike. For a structure leaning bearish, that is the worst case.
Bearish rejection
A drop under $740.00 takes $MU below every strike. That is where this bearish structure pays the most.
Neutral stabilization
If $MU settles between $740.00 and $835.00 into Nov 6 and Dec 18, time decay and the final price decide who wins, which is exactly what spreads are built to control.
What to watch next
- $740.00 and $835.00: the outer strikes that define this trade.
- Open interest on each leg in the next session, to confirm the structure was opened rather than closed.
- Nov 6 and Dec 18: expiration, 24 days out for the nearest leg, when the structure resolves.
- Follow-on spreads at nearby strikes, which would show a desk building a larger position.
- $929.03 and $1,113.89: the edges of MU’s recent trading range.
