Micron earnings could jolt markets

Key Points:

• Roundhill Investments, REX Shares, and Tuttle Capital Management launched the Roundhill T-REX 2X Long DRAM Daily Target ETF (RAM), a 2x leveraged version of the popular Roundhill Memory ETF (DRAM), which has gained over $22 billion in assets since April.
• The new ETF capitalizes on Micron Technology's volatility and popularity, especially after its 700% rally over the past year and its significant presence in major semiconductor and tech ETFs.
• Micron's upcoming earnings report is highly anticipated, with traders expecting a 10% price swing and implied volatility at 111, among the highest in the S&P 500, potentially driving increased market volatility.
• Leveraged ETFs tied to tech stocks like Micron regularly generate massive daily rebalancing flows exceeding $20 billion, which can amplify market swings during major events like earnings reports.
• Investors are also watching South Korean memory chip makers SK Hynix and Samsung, which dominate the local market and show relatively cheaper volatility, with some traders placing bullish bets on the iShares MSCI South Korea ETF (EWY).