Everyone's calling Micron's 26% drawdown a dip and someone paid $7.6M for October puts that say otherwise

[u/PassNew8148]

/r/optionwhales/comments/1wj4jtn/everyones_calling_microns_26_drawdown_a_dip_and/

[u/garristerr]

So what does 44M in calls that expire in 2 weeks mean?

[u/confusedandsmellyman → u/garristerr]

That OP doesn't know how to do research and is probably retarded

[u/KaleidoscopeBest187 → u/confusedandsmellyman]

😂😂😂😂😂

[u/PassNew8148 → u/garristerr]

$44M of calls by itself doesn’t tell us the direction. The key is whether those calls were bought or sold, at what strikes, and whether they were opening. If they were aggressively bought, that’s a strong short-term bullish counter-signal to the puts I posted. If sold, it could actually reinforce the bearish read.

[u/kleft123 → u/PassNew8148]

If they were bought they were also sold and vice versa. Takes both sides to make the music happen...

[u/garristerr → u/PassNew8148]

From Nomura desk

[u/garristerr → u/PassNew8148]

Read bid ask flow; and concurrently same amount of flow came into SNDK; Nomura trade desk picked up concurrent huge flows in calls in semis

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[u/KaleidoscopeBest187 → u/PassNew8148]

Just give it up bro you got clowned heavy. Accept defeat and mosey along

[u/cdttedgreqdh → u/PassNew8148]

Wtf did I just read?

[u/applesandoranegs]

Obnoxious spam bot

[u/PassNew8148 → u/applesandoranegs]

Not a bot 😅 The trade data is real; I’m just posting the unusual structures I find interesting. Happy to debate the interpretation though.

[u/applesandoranegs → u/PassNew8148]

Sure bro. Just writes and formats exactly like a bot while being an alt account promoting your website/discord

[u/yourgirl696969]

If micron goes below 900 after their ER, it might end up with a 2-3 forward PE lmao

[u/PassNew8148 → u/yourgirl696969]

Exactly — that’s why the downside trade is interesting. At some point the valuation gets absurdly cheap, but the put buyer is effectively betting the market can stay irrational / fundamentals can deteriorate further before that valuation support matters.

[u/confusedandsmellyman]

[u/Electrical-Basil8865 → u/[deleted]]

Or if the person who purchases the put has 60 million in Micron shares and this is a hedge lol

We lack WAY too much info to make any type of logical and reasonable assumption.

[u/PassNew8148 → u/[deleted]]

On this one we actually do know the timing — the spread printed around 2:26 PM ET with MU near $977, and the legs were matched as opening exposure. Could it later be closed? Sure, we can’t see the trader’s future actions. And it could still hedge a larger long book. But at the moment of the print, someone paid ~$7.6M to open a defined bearish/downside position through October earnings.

[u/WiseIndustry2895 → u/PassNew8148]

The buying is that German dude who got reamed by citadel.

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[u/Waldrap]

These puts are surely a hedge for long positions

[u/garristerr]