MU options

This is a thesis update on the open bullish MU call. Micron reported record fiscal Q4 results on September 30, with revenue of $54.23 billion against $11.32 billion a year earlier, non-GAAP EPS of $33.42, and guidance of $61.5 billion plus or minus $1.5 billion for the current quarter, about 8% above the $57 billion consensus. Management expects fiscal 2027 to be another record year as AI demand tightens memory and storage supply. Samsung's preliminary Q3 release this week put operating profit near 107.4 trillion won, roughly nine times the year-ago level, and Seoul Economic Daily reports DRAM prices up 20% quarter over quarter on 3% shipment growth, memory margins at 76%, and broker estimates of another 47% profit jump across memory makers next year. The stock closed near $1,081, about 14% below its 52-week high of $1,255, and it barely moved on either print. Thirty-day implied volatility is 51% with an IV rank of 6.5, near the bottom of its one-year range, so the June 2027 call buys the December and March earnings reports at unusually cheap option pricing. The 1100 strike goes in the money on a 2% move and pays if the stock returns to its high. DA Davidson set a $3,000 target this week. Main risk: memory cycles turn fast. Micron guided fiscal Q1 gross margin lower, and with beta above 2, a DRAM or HBM pricing rollover in 2027 would send the stock down faster than the market and leave the call worthless.