Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 15, 2013  Tue 9:12 AM CT

SNDK: SEE CHART GET CHAIN FIND STRATEGIES
A large call spread tops today's option trade in SanDisk as shares are up against a resistance level in place for the last nine months.

A trader bought 5,000 February 49 calls for $1.28 and sold the same number of February 50 calls for $0.96, below the listed bid price at the time, according to optionMONSTER's Heat Seeker system. The volume at each strike is more than twice the previous open interest, so this was a new position.

The call vertical spread cost $0.32 to open, which is the most that can be lost in the trade. The maximum gain of $0.68 would be realized if SNDK is above $50 at the February expiration. (See our Education section)

SNDK is down 1.04 percent to $46.51 this morning, but shares finished yesterday at their highest close since gapping down from $50 at the start of April 2012. This trade sees the memory-chip maker filling that gap over the coming weeks.
Share this article with your friends


Premium Services

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER