Micron (NASDAQ:MU) just posted one of the most impressive earnings beats in recent memory — blowing past analyst estimates on both the top and bottom lines. The stock closed at $1,048 yesterday and surged another 15% in after-hours trading on the news.

But the stock price reaction is only part of the story. The options market had its own projection going into the print — and what it’s showing now tells us something important about where MU may be headed next.

Here’s what the positioning and price action are saying about the trade going forward.

Implied Move Projections for MU Earnings

For the quarter, Micron reported earnings per share of $25.11 on revenue of $41.5 billion. Analysts were anticipating EPS of $20.39 and revenue of $35.1 billion, according to Bloomberg consensus estimates — a blowout beat on both lines, with forward guidance coming in above expectations across the board as well.

Looking at the daily implied move app, the options market projected a move of 9.15%, or roughly $98 up or down from the print. The actual after-hours move of 15% is a meaningful right-tail response — the stock is running well beyond what the options market priced in, signaling a stronger-than-expected bullish reaction despite an already strong consensus setup.

What Option Positioning Is Saying

Looking at the GammaLens app for MU, the option positioning shows $1,050 — right in line with yesterday’s close — as the top gamma strike (TGS): the strike with the highest combined notional gamma across all calls and puts, for all strikes and all expiries. In the full options chain, this is the level where bulls and bears alike have converged.

That tells us the market views this area as a key liquidity and support base. Also notable: $1,100 is standing out as the next bullish target for call positioning (blue bars in the chart), and calls are broadly dominant north of $1,000 — which favors a bullish bias, with options dealers inclined to buy dips and sell rips. If MU can hold above $1,050 when the market opens, expect supportive activity from dealers and market makers.

Price Action on MU

On the one-hour chart, MU is trading in an upward-sloping wide channel, with the bottom of the channel holding the dips and the topside acting as a profit-taking zone for bulls.

This is bullish price action, and the right trade is to go with the trend until the channel breaks. Trading against it means positioning a stop loss against the broader market direction — not a favorable setup. The upper end of the channel near $1,275 is a reasonable area to take profits, and a number of other AI-sector tickers have also moved higher on the Micron print.

The read here is that the AI/semiconductor/memory trade has a short-term leg up — possibly medium-term as well — unless MU gives back yesterday’s gains. A pullback below approximately $1,040 when the market opens would be the first signal to watch for profit-taking. Until then, the overall picture is bullish for the AI trade.

If you’d like to learn more about how we’re trading MU and other AI tickers, we’re live every Monday through Friday from 9 a.m. to 2 p.m. ET in the Benzinga Options School, covering exactly how we’re planning the AI trades moving the market every day.