Micron Technology (MU) has spent September consolidating in a tight range between $70- and $72. There could be a break from this pattern — in either direction – as soon as next week. The chipmaker heads into the earnings confessional after the close on Wednesday, Sept. 27 for its fiscal fourth-quarter report, and ahead of the event, options traders are bracing for a larger-than-expected move.
The semiconductor stalwart has a mixed history of earnings reports. Going back two years, the stock averages a post-earnings move of 4.3%. In those last eight reports, MU has delivered three positive post-earnings reactions and five negative ones, including a 4.1% drawdown in late June. For Thursday’s trading, the options market is pricing in a 7.2% move, regardless of direction.
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