SNDK – SanDisk Corp. (Long)
Closing price: $94.03
Target: $96 – $96.25
Trade idea: September 97.50x calls currently trading at about 1.25.
On 7/16 SanDisk reported Q2 earnings which topped estimates. The company reported EPS of $1.41 and revenues of $1.63B vs the estimates of $1.39 and $1.60B. The company however issued soft guidance for Q3 which sent the stock nearly 15% lower. Since then the stock has been trading sideways in a channel on the daily and is now beginning to breakout. The weekly chart has also put in a potential reversal pattern which will be confirmed with a break of $94.45 next week.
The price target is $96 – $96.25 which can come as early as next week. The trade idea; buy to open September 97.50x calls which closed at 1.19 x 1.28 yesterday.
Weekly chart: (right click > view image for full size)