Monday’s Vital Data: Apple Inc. (AAPL), Micron Technology, Inc. (MU), and Netflix, Inc. (NFLX)

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The major market indices finished flat-to-lower on Friday, as Greece continue to weigh heavily on U.S. markets. If futures are any indication of today’s activity, Wall Street is in for a red day as the EU prepares for potential fallout from of a Greek default on its debts.

stock-market-today-630Options volume was moderate at the end of last week, with traders seemingly already preparing for a selloff as puts gained popularity. Overall, the CBOE equity put/call volume ratio spiked to 0.74, its highest perch since late May of 0.74. The 10-day moving average rose to 0.62.

In equity news, details on Apple Inc.’s (NASDAQ:AAPL) music service were revealed Friday, including celebrity partners and programming schedules. AAPL stock also enjoyed an upgrade ahead of the open this morning. Elsewhere, Netflix, Inc. (NASDAQ:NFLX) continues to retreat from all-time highs as analysts bail on the stock in the wake of a board approved 7-for-1 stock split. Finally, Micron Technology, Inc. (NASDAQ:MU) was pummeled after the company missed third-quarter earnings expectations and issued lower guidance.

Let’s take a closer look at the action in AAPL, NFLX and MU.

06-29-2015 Top Ten Options

Apple Inc. (AAPL)

Details for the coming Apple Music service were laid out by DJ Zane Lowe in a recent interview on The New York Times. According to Lowe, Eminem will be the first official Beats 1 live radio show guest, and that Beats 1 “will alternate one- and two-hour programming blocks by established broadcasters with those by musicians and celebrities, who will host and plan the shows themselves.” Other confirmed hosts include Dr. Dre, Elton John, Drake and Pharrell Williams.

Elsewhere, while the news clearly didn’t affect Friday’s options volume, Vetr upgraded AAPL stock to “buy” from “hold” this morning. Vetr also set its price target for AAPL at $147.35.

On the options front, AAPL volume was modest for a Friday session, with 822,729 contracts changing hands. Overall, 56% of Friday’s volume traded on the call side. Taking a look at this week’s options configuration, peak open interest for the weekly July 2 series totals 35,194 contracts at the overhead $130 strike. The $127-$132 region could be a battleground for AAPL, as each of these call strikes sport open interest in excess of 10,000 contracts.

In premarket trading, AAPL stock was last seen off by nearly 1% at $125.59.

Netflix, Inc. (NFLX)

After hitting an all-time high north of $700 late last week, NFLX stock has been in free-fall mode. The shares plunged on Thursday and Friday, as analysts quickly downgraded the stock (Societe Generale cut NFLX to “sell” from “buy,” and Citigroup downgraded the stock to “neutral” from “buy”) and traders looked to take profits. The stock is down another 2% in premarket trading, placing NFLX below its 10- and 20-day moving averages heading into the week.

Options activity was notably brisk on Netflix stock heading into the weekend. On Friday, 180,558 contracts traded on NFLX, though calls accounted for 54% of the day’s volume, despite the flood of selling pressure.

Looking at the week ahead, peak call open interest in the weekly July 2 series totals 1,812 contracts at the overhead $665 strike. Peak OI for the weekly series, however, totals 2,428 contracts at the in-the-money $650 put, with another 2,005 puts open at the $645 strike.

Micron Technology, Inc. (MU)

MU stock was smacked slower on Friday, as the shares plunged more than 18% in the wake of Micron’s disappointing third-quarter earnings report. For the quarter, Micron said it earned 54 cents per share, whiffing the Street’s target of 56 cents per share. Most distressing, however, was Micron’s poor fourth-quarter revenue guidance, which was placed at $3.45-$3.7 billion versus Wall Street’s estimates for $4.16 billion.

Options volume soared to a near-term record for MU, with only AAPL outstripping the 607,909 MU contracts traded on Friday. Traders may be looking for a rebound from oversold levels, however, as 55% of Friday’s volume consisted of call contracts.

On the weekly options front, peak open interest totals 7,980 contracts at the July 2 series $24.50 strike, which is now deep out-of-the-money. The nearest weekly call with notable open interest is the $20 strike, where 3,129 contracts are open. On the put side, peak open interest totals 2,821 contracts at the $24.50 strike, while the $19.50 and $19 strikes are quickly gaining popularity.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/06/mondays-vital-data-apple-inc-aapl-micron-technology-inc-mu-netflix-inc-nflx-options/.

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