Micron Stock Plummets 2.72% in Second Consecutive Day of Losses, Trading Volume Ranks 22nd at $38.93 Billion

On July 17, 2025, Micron Technology (MU) experienced a significant decline, with its stock price dropping by 2.72%, marking the second consecutive day of losses and a total decrease of 5.70% over the past two days. The trading volume for the day was substantial, reaching $38.93 billion, placing Micron at the 22nd position in terms of daily trading volume.

Micron's recent stock performance has been influenced by a combination of factors, including short-term market volatility and strategic uncertainties. Despite strong DRAM revenue growth, driven by AI adoption in data centers and the automotive sector, market participants are concerned about competitive pressures and regulatory shifts. Unconfirmed reports of SK Hynix securing favorable regulatory treatment have triggered a flight to safety in the options market, with put options at the 107–110 strike range seeing significant volume.

The semiconductor sector is currently experiencing turbulence, with broader market jitters affecting Micron's stock. Geopolitical uncertainties, such as TSMC's exit from GaN production and U.S.-China chip policy shifts, have added to the volatility. While memory players like Micron face near-term demand fluctuations, logic chipmakers are benefiting from AI infrastructure spending. This bifurcation in the sector highlights the differing investor sentiments towards memory-specific cycles versus long-term AI infrastructure trends.

Micron's technical indicators suggest a critical juncture. The stock is trading near its lower Bollinger Band at $110.95, with the 200-day moving average acting as a strong support floor. While the Relative Strength Index (RSI) indicates oversold conditions, the bearish K-line pattern suggests caution. The Direxion Daily MU Bull 2X Shares (MUU) is down 5.74%, amplifying short-term pain for leveraged longs.

For traders looking to navigate Micron's volatile technical landscape, options plays such as the MU20250725P107 put and the MU20250725C116 call offer strategic opportunities. The MU20250725P107 put provides high leverage and sensitivity to price swings, making it a valuable tool for directional bets in a downside scenario. Conversely, the MU20250725C116 call offers balanced delta for volatility capture without full directional exposure, ideal for short-term plays.

Historical performance analysis of Micron's stock after a -3% intraday plunge shows mixed results. While the stock has a relatively high chance of recovery within a few days, the overall returns over longer periods are modest, and the risk of a negative outcome increases with time. This suggests that investors might consider a short-term investment horizon or closer attention to market trends if they decide to take advantage of such intraday plunges.

Micron's sharp correction has created a high-probability setup at critical support/resistance levels. The immediate test at $110.95 (lower Bollinger Band) is crucial, and investors should differentiate between cyclical memory dynamics and structural AI infrastructure demand. Aggressive positioning favors the MU20250725P107 put for downside protection and the MU20250725C116 call for volatility capture. Watch for a breakout above $114.20 or breakdown below $110.95—either move could redefine the stock's near-term trajectory.