This article first appeared on GuruFocus.

Micron Technology (NASDAQ:MU) options traders priced in another sharp move for the chipmaker's shares ahead of Wednesday's earnings report, after the stock fell about 13% on Tuesday. Micron's setup pointed to a wide post-results range.

Near-the-money June 26 straddles implied a swing of roughly $139 by Friday's close, or about 13% from Micron's trading level. That suggested a possible range of about $920 to $1,200 for the stock, even after Micron had already reset lower before the report. The $1,050 and $1,060 strikes were among the most closely watched levels, with the $1,050 call carrying sizable open interest.

Micron also drew active trading on both sides of the chain. Calls above the stock saw heavy volume, including the $1,100 and $1,200 strikes, while puts stayed busy as well. Near-the-money put premiums jumped as traders paid for protection against another leg lower if Micron's results or guidance disappoint. The options tone suggested traders were still positioned for a large move in either direction this week, after the pullback.