Dealer Hedging Around Micron's Key Strikes

MU's options structure into Wednesday:

• Massive call OI at round strikes — retail positioned for continuation
• Put wall lower — where selling pressure would concentrate
• Dealers likely short gamma near the call wall — the chase-hedging regime that accelerates upside

The post-print dynamic: if MU beats and rips toward the call wall, dealer hedging (buying underlying to hedge short calls) fuels the move further — classic gamma acceleration. If it misses and falls toward the put wall, the same mechanics amplify downside.

The honest caveat: post-earnings IV crush wipes out most of the dealer hedge exposure overnight — the gamma mechanics matter most in the first hours, not days.

Run the scenario tree on Stock Picks.