SanDisk closed at $1150.89, down 13.47%.
The options tape featured a $19.32 million short put spread collecting premium below the 650 strike, alongside a $3.72 million sale of 800 puts. The dominant bulk flow leaned bearish through call selling and neutral-to-bearish put spread activity, though the far out-of-the-money short 800 put provided a notable offset, suggesting large traders are combining premium collection with a capped upside view rather than pursuing an aggressive bullish breakout.
>>Don’t Let Fees Quietly Eat Into Your Returns — Get up to SGD 200 in Options Rewards!
Options Indicators
SanDisk’s implied volatility is 82.47%, and while that absolute level is high, its IV percentile is only 19.92%, which indicates current volatility sits on the low side relative to its own recent history. In that context, options appear cheaply priced rather than expensive, and the IV/HV ratio of 1.23 suggests implied volatility is running modestly above realized volatility, meaning the market is still embedding some premium for forward uncertainty.
The Call/Put volume ratio is 1.03.
Large Trades
A spread strategy collecting $19.32 million in net credit was the largest displayed block, structured as a same-direction short put spread using the December 17, 2027 expiration with short 650.0 puts and short 640.0 puts. With both legs sold and both strikes well below the $1,150.89 reference price, the position is entirely out of the money and is best read as a premium-collection trade that leans neutral to mildly bearish in tone, expressing a view that SanDisk is unlikely to collapse toward those lower strike areas over the life of the trade while the seller harvests option decay.
A PUT sale worth $3.72 million was the other displayed large trade, involving the sale of 2,800 contracts of the 800.0 put expiring January 15, 2027. This strike sits far out of the money versus the $1,150.89 reference price, so the trade reflects a bullish-to-confidence stance: the seller is effectively wagering that SanDisk will remain comfortably above 800 into expiration, using the out-of-the-money short put to collect premium and potentially express willingness to own shares only after a very large downside move.
Overall, the large-order flow points to a bearish bias. Even though the displayed short 800 put is supportive and reflects confidence in a distant downside floor, the broader bulk-order picture is dominated by bearish premium-selling activity, especially call selling and the neutral-to-bearish short-put combination, which together suggest traders are more focused on capping upside expectations and monetizing volatility than positioning for a strong bullish breakout.
Strategy Reference
For a low assignment probability sell, consider a short put near the 700 strike or lower, or use a put credit spread such as short 700 put and long 650 put to reduce margin while still collecting premium.
Comments