Micron earnings could jolt markets — and a new ETF may fuel volatility
The Micron Technology workplaces in San Jose, California, Dec. 16, 2025.
David Paul Morris | Bloomberg | Getty Images
A new ETF searching for to leverage Micron’s volatility has emerged – proper within the nick of time
After the large success of the Roundhill Memory ETF (DRAM) – a fund that is raised greater than $22 billion in lower than three months and has greater than doubled in worth since its April debut – asset supervisor Roundhill Investments, alongside REX Shares and Tuttle Capital Management, launched a new providing on Wednesday. The Roundhill T-REX 2X Long DRAM Daily Target ETF (RAM) is a 2x leveled model of DRAM that started buying and selling at round $24 per share.
The launch capitalizes not simply on the recognition of Micron Technology as a inventory and choices favourite amongst buyers after a 700% one-year rally, but in addition the rising recognition of leveraged funds and merchants’ common consolation, if not choice, to be in risky merchandise tied to the bogus intelligence growth.
Micron Technology prior to now 12 months
Micron is about to report earnings Wednesday night time, and you would be hard-pressed to search out an investor that does not have some publicity to the inventory in a single kind or one other.
It’s now the fourth-biggest holding within the $73 billion VanEck Semiconductor ETF (SMH)a 28% weight within the DRAM ETF, and 8% of the roughly $30 billion levied fund Direxion Daily Semiconductor Bull 3X ETF (SOXL). It’s additionally among the many prime 10 largest firms within the S&P 500. At a market cap just under $1.2 trillion, Micron frequently trades billions of {dollars} in choices per day, with $1.4 billion already traded in Wednesday’s session.
“For the next 48 hours the market and Micron are basically the same,” mentioned Zed Francis, CIO at Chicago-based Convexitas, who runs a semiconductor choices technique.
Leveraged ETFs, the preferred of which goal tech firms which have powered the bull market, carry day by day rebalancing flows frequently in extra of $20 billion, in keeping with an evaluation from Barclays equities tactical methods.
That could exacerbate swings available in the market round massive occasions like Micron earnings, the place merchants presently count on a 10% swing. Implied volatility within the inventory is 111, the best within the S&P 500 alongside reminiscence peer sandisk.
“Sometimes better to be lucky than good, but launching the day Micron reports: This is the most important earnings report for the whole market that we’ve seen in a while,” Dave Mazza, CEO of Roundhill, mentioned by telephone.
There’s additionally the South Korean inventory market, the place memory-makers SK Hynix and Samsung account for round 40% of market cap. Volatility of 92 is comparatively cheaper within the iShares MSCI South Korea ETF (EWY).
On Wednesday morning, one dealer in that fund placed on a bullish “risk reversal” commerce. They bought $1.2 million price of the 170-strike EWY places expiring July 17, then purchased $700,000 price of the 240-strike calls, betting on a 23% rally by the identical date.
