Jim Cramer, the host of CNBC's 'Mad Money,' identified a wave of short-dated call option buying across several semiconductor companies on Friday morning. Cramer noted that more than $90 million in premium was exchanged in these trades, specifically highlighting purchases tied to Intel, Micron, SanDisk, and Marvell.
The specific options trades mentioned by Cramer included a short-dated call on Intel with a strike price of $115, valued at approximately $3.8 million. In addition to Intel, Cramer pointed to significant call activity on SanDisk, with calls at the $1,600 strike totaling about $41 million, and Micron, where calls at the $1,000 strike accounted for roughly $44 million. Marvell Technology was also cited, with calls at the $250 strike valued at $3.8 million.
Cramer suggested that the pattern of buying resembles that of Leopold Aschenbrenner, the founder of the AI-focused hedge fund Situational Awareness. The fund previously held roughly $5.7 billion in SanDisk and $5.6 billion in Micron at the end of June. Following a period of leverage and unwinding, the fund finished the year up 80% before the Securities and Exchange Commission sought information from banks that financed its trades.
Regarding the current market prices, Intel was trading near $109.42, leaving the $115 strike only a modest distance away. SanDisk was changing hands around $1,669.28, which was above the $1,600 strike. Micron was trading near $990.48, putting the $1,000 strike at the money. The options flagged by Cramer have an October expiration, which falls after Micron’s fiscal fourth-quarter report.
