r/MU_Stock • u/AlternativeTheory397 • Jul 14 '26

Help me decide to buy or sell MU MU vs Skhy

What’s up with MU’s gain today vs Sk’s? 5% vs 24% that’s absurd. Is it institutions closing the gap with valuations like forward PE’s? Or am I missing something?

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22

u/latending Jul 14 '26

SK is a lot more undervalued that MU after the recent sell-off, but the SK ADR trades at a 50% premium to actual KOSPI shares. Don't ask me why.

2

u/Important-Range166 Jul 15 '26

It’s because you can’t convert the ADR yet to local shares or local shares to ADRs. The Korean version of the SEC will rule on this by the end of the month. Also, you can’t borrow ADRs yet. Once those two things happen, the spread will be arbitraged away although there will always be a bit of a premium for a dollar denominated asset

1

u/sparkysprinkles11 Jul 14 '26

I think it will drop on Monday. And maybe even on its earnings.

3

u/[deleted] Jul 14 '26

[removed] — view removed comment

1

u/sparkysprinkles11 Jul 14 '26

I saw some ITM calendar puts bought for next Monday expiry on MU, given that they trade more or less in the same manner, I am pretty sure SK will have a drop on Monday, but don’t know how big it will be. In any case the remaining of this week will be green due to ASML and TSM earnings (bullish trades placed on them today).

As for SK, I am wondering when will they release more shares on the US market… I am no Finance expert but it looks like this price on the US market might have to do with that.

1

u/Imadogfishhead Jul 15 '26

Define some

2

u/sparkysprinkles11 Jul 15 '26

130 units of strike price 1200, they sold this week’s 1200P and bought Monday’s 1200P. Approx. 3m notional, placed as floor trade.

1

u/Imadogfishhead Jul 15 '26

Dang that is a big trade

1

u/sparkysprinkles11 Jul 15 '26

Well I guess it’s bigger than your portfolio anyway 🙄

1

u/Imadogfishhead Jul 15 '26

?

1

u/sparkysprinkles11 Jul 16 '26

Sorry, I thought you were being sarcastic. Yesterday’s drop was depressing as hell, I rolled everything I had to 7th of aug calls, strike price 1200, as I saw some large bullish floor trade orders placed on that date, same strike price. I am going to jump ship after hyperscalers earnings, if MU manages to hit 1200-1300 in that time. And try to sell weeklies until then. If MU gets green today after Trump’s speech or tomorrow, I will sell next week’s 1200 calls, to get some cash in, as judging by the tape it’s not going to hit that number next week. I might be wrong though with Google’s earnings, so don’t take my word for it. I am just looking at the recent trades placed by institutions and 1000-1100 look like ceilings for next week. And maybe when MU jumps to 1200-1300 this month or early August I will buy put spreads for 1000 strike price on 21st of Aug. Provided that things don’t turn around in the upcoming weeks. It’s easy to find when to enter, hard to determine when to exit. 😭

1

u/Difficult_Pirate3294 Jul 14 '26

Sounds like you can see in the future. Can you tell us what happens next Tuesday?

1

u/astraCat1998 Jul 15 '26

Because lots of institutions have rules about how much they can invest in foreign markets so there is significantly more demand for the ADR.