Options Traders Pile Into Micron as News Swirls Around the Memory Giant

Aggressive call sweeps on r/options suggest institutional investors are positioning for a move to $1050–$1100 by June 12.
MU stock fell 7.3% Thursday as a Broadcom guidance disappointment triggered a sector-wide selloff, but Reddit sentiment stayed bullish.
CEO Sanjay Mehrotra sold $36 million in stock under a pre-arranged plan, a detail that added to the day's high-conviction discussion.

Micron Technology stock took a hit on Thursday, but retail investors on Reddit were anything but bearish. The memory giant dropped 7.3% in a semiconductor selloff triggered by Broadcom’s cautious AI-chip revenue guidance, yet discussion across r/wallstreetbets, r/options, and r/investing pointed to a different story—one of heavy bullish conviction and a belief that the underlying demand drivers remain intact.

Massive Options Flow Spotted on r/options

The standout signal came from r/options, where a post highlighted $583 million in total flow on

$MU with a 76/24 call/put split and $127 million in net bullish premium. A single block of activity at 11:32 AM and again near the close swept calls across a $1000–$1100 strike ladder, including $58.2 million at the $1000 call and $18.8 million at the $1005 call. Volume-to-open-interest ratios above 8x on several strikes reinforced the thesis that these were new directional wagers, not existing position adjustments. The post’s conclusion: institutional players are pricing a breakout toward $1050–$1100 by the June 12 expiry.

A Headline-Driven Pullback

Thursday’s price action was driven by contagion from

$AVGO —which fell 14% after management’s Q3 AI revenue guidance of $16 billion fell well short of whisper expectations around $17.2 billion. The selloff spread through the semiconductor sector, and

$MU was caught in the downdraft. The

$SOXX iShares Semiconductor ETF, which had surged 23% in May partly on memory-chip momentum, pulled back 6%. Several Motley Fool articles framed the drop as a temporary overreaction, noting that Broadcom’s own AI chip revenue still grew 143% year over year.

Adding a layer of texture,

$MU CEO Sanjay Mehrotra sold $36 million in stock on May 29 under a pre-arranged 10b5-1 plan. While the sale was scheduled in January, its disclosure on Thursday—alongside the drop—sparked conversation on Reddit about insider timing and whether the stock’s near-900% run from its 52-week low had room to extend.

Retail Sentiment Remained Strikingly Bullish

Despite the headline-driven selloff, aggregate retail sentiment on Reddit stayed bullish. r/wallstreetbets posts carried a sentiment score of 0.75, r/investing at 0.71, and r/options at 0.71. A popular r/wallstreetbets DD post argued that NAND flash supply is “just as fukd as DRAM” and that pure-play NAND producers like Kioxia—and by extension the broader memory ecosystem—are entering a structural upcycle driven by AI inference demand.

The day’s highest-ranked ticker-data point underscored the disconnect between price and sentiment:

$MU logged a rank_delta of +59, meaning it vaulted up Tendie.bot’s stock rankings by 59 places versus the previous day. With 13 posts, 219 comments, and a sentiment score of 0.57, the discussion was concentrated but loud.

Sentiment: 58% bullish, 29% bearish, 13% neutral.

The Bigger Picture for Memory

Beyond the day’s noise, the macro narrative around memory chips remains intact. AI training demand has soaked up DRAM and NAND supply, and multiple analyst reports cited in Thursday’s news cycle projected memory shortages through at least 2029. Gaming industry articles even highlighted that surging memory costs have forced console makers to raise prices, a downstream effect that reinforces why Micron’s core business is underpinned by a multiyear secular trend.

For Reddit’s retail traders, Thursday’s price dip looked less like a reversal and more like a volatility-fueled entry point—at least, that’s what the options flow suggested.

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