Sandisk Bull Call Spread Targets $1,650 After Earnings With $5,330 Risk
Updated
Updated · Yahoo Finance · Aug 5
Sandisk Bull Call Spread Targets $1,650 After Earnings With $5,330 Risk
3 articles · Updated · Yahoo Finance · Aug 5
Summary
Sandisk reports earnings Wednesday after the bell, and the outlined trade uses an Aug. 21 bull call spread to seek upside without committing more than $140,000 to 100 shares.
The position buys a $1,500 call for $154.50 and sells a $1,650 call for $101.20, leaving a net debit of $53.30 per share, or $5,330 total.
Break-even sits at $1,553.30—about 9% above the stock price when priced—while maximum profit is capped at $9,670 if Sandisk finishes at $1,650 or higher; the full debit is lost at $1,500 or below.
Implied volatility near 144% makes outright calls expensive, so selling the higher strike cuts upfront cost and risk but gives up gains above $1,650.
The $1,650 target also lines up with resistance near the midpoint of Sandisk's drop from a record $2,335 on June 25 to $1,015.89 on July 29.