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On Friday’s Options Action, the crew analyzed the performance of the semiconductor sector. Semi’s have reached it’s dot-com peak while underperforming the technology sector over the past few months. Micron reports earnings next week and recently failed to make a new high while underperforming the tech sector. Coupled with Micron’s sell off after last quarter’s earnings beat, suggests another move lower on earnings. Expecting MU to trade lower, Michael Khouw suggests buying a July 57.5/50 Put Vertical for a $2.70 Debit. As of Friday’s close, this option is trading at $2.42.

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