SanDisk sees call spread a key level
Chris McKhann | firstname.lastname@example.org
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.