After Micron has best day in 18 months, two traders see a bigger breakout forming

Micron Technology is coming off its best day in 18 months.

The semis stock led the space on Friday, adding 8% in its best day stretching back to May 2020. It has been a laggard this year, up just 10% and dwarfed by huge moves in other semi stocks like Nvidia and AMD.

Two bullish notes kicked off the rally on Friday. Both Evercore and Citi highlighted the stock as having upside potential thanks to an expected renewal in demand for memory chips.

Michael Binger, president at Gradient Investments, says this could be Micron's time to shine.

"It's a cyclical stock, supply and demand affected, and I think these two analyst reports [Friday] kind of woke people up that it looks like pricing is going to come back to the DRAM and the NAND market in the first quarter of 2022. If that's the case, you need to be buying the stocks, especially Micron, a quarter before that happens which is right now," Binger told CNBC's "Trading Nation" on Friday.

"It's dirt cheap at seven times [forward earnings]. If we can get it to 10 times, that's a good movement for Micron, and I would be a buyer today," he said.

Danielle Shay, director of options at Simpler Trading, agrees that the move in Micron is just beginning.

"The underperformance has given us a really nice consolidation on Micron … and I'm looking at that consolidation breaking out. It's up above the [200-day moving average] on high volume. I'm targeting $100 and then $120," she said during the same interview.

Shares closed Friday at $83.03. A move to $100 and $120 implies 20% and 45% upside, respectively.

"We additionally have a run into earnings in Micron which is typically pretty strong. So I think looking at long calls in the earnings series would make sense for a rise in IV [implied volatility] and then also potentially a bullish butterfly out into January targeting that new high," Shay said.

Micron will report earnings on Dec. 20.  

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