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ScanDisk SNDK has Investors Bullish!

|Includes: Western Digital Corporation (WDC)

SanDisk Corp (SNDK)

Investors are Bullish on SNDK!

Trading traffic is heaviest at the December $50 strike where more than 10,970 calls changed hands last Friday. It looks like the majority of the contracts were purchased at an average premium of $0.70 per contract by investors expecting SNDK shares to hit new 52-week highs ahead of expiration this coming Friday.

  • Bulls also picked up another 1,250 calls at the higher December $55 strike for an average premium of $0.12 each AAA
  • Optimism regarding prospects for SanDisk's shares spread to the January 2011 $55 strike where some 1,600 calls were coveted at an average premium of $0.96 a-pop
  • Other bulls looked to the higher January 2011 $60 strike to purchase 1,725 call options at an average premium of $0.32 per contract

Semiconductor Industry. Market cap of $11.63B. RSI(14) at 76.04. Short float at 6.37%, which implies a short ratio of 1.41 days. The stock has gained 118.12% over the last year.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in SNDK over the next 72 hours.