Micron Technology Inc MU shares traded higher on Monday after competitor Samsung Electronics Co Ltd SSNLF said it would cut memory chip output.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Micron traded at 2.8x average daily call volume on Monday.

Don’t forget to check out our premarket coverage here

There were buyers of 20,200 of the April 14 weekly 67-calls at an average price of $0.27 per contract, Khouw mentioned.

The trader expects Micron shares to rally into Friday’s close.

Micron recently reported worse-than-expected earnings and sales results for its second quarter.

Price Action: Micron shares gained 8% to close at $63.27 on Monday and added 0.4% in Tuesday's pre-market trading session.

Check This Out: CarMax, Albertsons Companies And 3 Stocks To Watch Heading Into Tuesday

Photo: Shutterstock