Bulls Target Micron Technology

By Pete Najarian, co-founder of OptionMonster

NEW YORK -- Micron Technology (MU) attracted bullish option activity before its quarterly results last night.

OptionMonster's tracking programs detected heavy buying in the May 10 calls, which traded in big chunks for 42 cents. More than 22,000 of the contracts traded against open interest of 2,411 contracts.

Those calls lock in the price where investors can buy the stock, so they can generate some nice leverage in the event of a rally. But if the shares don't move, these contracts could lose all their value.

Micron fell 2.58% to $9.07 in regular trading Thursday. Its options have very active recently, and the shares have already shot up 43% so far this year.

The company reported second-quarter revenue of $2.08 billion after the bell. That beat the $1.92 billion expected by analysts, and the stock added another 3.4% in extended hours.

Calls outpaced puts by almost 135,000 to 44,000 in the session. Total option volume was five times greater than average.

Najarian owns MU calls.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.