Three key AI stocks to watch this week with traders expecting giant moves
After a bumpy week for stocks SpaceX and at the debut of Federal Reserve chairman Kevin Warsh, investors will again be able to read the pulse of the semiconductors sector, which is still at the heart of the bull market.
On Tuesday, AI chip maker brains It will report earnings after the bell — the first time the company has done so since going public last month. The stock is down nearly 30% since its first day of trading, and option prices are pointing to an 11.5% rise following the report. on wednesday, Micron The reporting is an important test for the stock, which is a symbol of memory names moving higher, supported by expensive buys in the options market.
Micron’s implied volatility was 116, the highest in the S&P 500 sandisk And Western Digital. Investors expect a 10% swing in earnings, the largest implied move since December 2024. The stock rose nearly 6% on Monday to $1,204 per share, bringing its year-to-date rise to 280 percent.
Options volumes on Micron were balanced on Monday, with about the same number of trades as calls, but call premiums accounted for $2.6 billion of $3.3 billion in options trades, according to SpotGamma.
The largest single call contract traded on the market Monday was a $61 million purchase of 800 of 430 strike Micron contracts expiring July 17; This was a deep in-the-money bullish position that traded similarly to long-term stocks. Because implied volatility in Micron is so high, in-the-money contracts will be less sensitive to the drop in volatility that is standard after an earnings event.
Micron, YTD
Of course, along with the record-breaking sales at Micron, there are also a lot of call sales going on. Roundhill Memory ETF (DRAM)According to data from ThinkOrSwim, 34,000 calls were sold compared to just under 20,000 purchased on Monday.
Investors may want to watch for perhaps the most bullish options around AI Super Micro Computer – Shares rose 16% after the company announced plans for a new data center. Nvidia architecture and bulls are piling up on calls.
According to ThinkOrSwim, more than 320,000 trades took place on SMCI, compared to just 64,000 puts, and traders bought almost 10 times more puts than puts. According to SpotGamma, the most popular contract by volume as of this writing is the 40-strike call expiring on Friday, with more than 24,000 contracts traded.
