OptionsHouse

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


Related Stories

SNDK

SanDisk traders keep the faith

August 11, 2015

One big investor expects a rebound after memory-chip company's results improved last quarter.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »