Betting on Semis & Sports

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We added three new longs today, each with a technology and/or growth focus.

We already sent details about our position in Nutanix $NTNX. That happened first thing this morning.

But throughout the afternoon– and despite, not in light of– the Fed, I decided to bet on Micron Technology $MU and DraftKings $DKNG, too.

Let’s walk through the setup on each:

Micron is shaping up as a textbook catch-up play in the semiconductor space.

After a ripper off the April lows, price has pulled back to a key polarity zone. If this level holds, it opens the door for a big bounce.

Our volatility squeeze indicator has moved from an expansion extreme to a compression extreme over the past few months. A big move is brewing, and we’re betting it will be higher.

Part of the reason we like this one so much is because when you zoom out, you will notice a multi-decade base dating back to the dot-com bubble, which completes around $100.

I’m thinking we can catch the early innings of that reaction rally.

I bought the $MU 10/17 $135 calls for $3.15 per contract.

I would not pay more than $3.35.