SNDK – SanDisk Corp. (Long)

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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)

SNDK

ARWR – Arrowhead Research (Long)

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ARWR – Arrowhead Research (Long)

Closing price: $12.89
Target: $14.30
Post earnings target: $16
Trade idea: September-August 16x call calendar spread currently trading at about 1.55.

Arrowhead Research is set to report 3Q earnings on August 12th after the market close. The stock recently put in a bullish reversal pattern in on the weekly chart which has signaled a bottom from the recent 30% sell off over the past month and a half. The first upside target is around $14.30 which could come as early as next week on earnings. The monthly chart has also signaled a bottom from the June highs which gives ARWR a target around $16 in late August – early September.

Chart (right click > view image for full size)

ARWR