US-listed AI storage stocks have been booming recently, with $SanDisk Corp(SNDK)$, the world's largest supplier of flash memory data storage products, rising over 11% on Monday to a new high. Its year-to-date gain has reached 664%.
Multiple media outlets reported that SanDisk significantly raised its NAND flash memory contract prices this month, with increases as high as 50%. This highlights the tight supply in the memory market due to continued demand from AI data centers and wafer supply constraints.
Goldman Sachs has doubled SanDisk's target price from $140 to $280 and maintains a "Buy" rating, believing that the NAND flash memory market will continue to experience a supply-demand imbalance until 2026, and the pricing power and profit margin explosion potential brought by this super cycle have not yet been fully digested by the market.
On November 10th, Goldman Sachs stated in its latest research report that SanDisk's Q3 performance significantly exceeded expectations, becoming a direct catalyst for boosting market confidence.
The research report pointed out that this means that NAND manufacturers represented by SanDisk will have significant pricing power, and their gross margins and profitability will experience explosive growth. Goldman Sachs has significantly raised its earnings forecast, believing that the market has not yet fully digested the potential of this super cycle.
Options Strategies
Bullish on SNDK
1. Bull Call Spread
When to Use:
Moderately bullish outlook — expecting further upside but wanting to cap risk and reduce cost.
Structure:
Buy 1 × Nov 21 call @ $270
Sell 1 × Nov 21 call @ $280
$SNDK Vertical 251121 270.0C/280.0C$
Max Profit: $420 (if SNDK ≥ $280 at expiry)
Max Loss: $580
Breakeven: $274.20
Source: Tiger Trade App
Notes:
Both strikes are out-of-the-money (OTM).
A strong near-term rally is needed; otherwise, time decay (Theta) will erode value.
Strategy benefits from rising implied volatility (IV) but suffers from low liquidity or falling IV.
2. Bull Put Spread
When to Use:
Neutral to mildly bullish — suitable for traders confident SNDK will stay above $200. Generates income from premium collection.
Structure:
Sell 1 × Nov 21 put @ $200
Buy 1 × Nov 21 put @ $190
$SNDK Vertical 251121 190.0P/200.0P$
Max Profit: $62.5
Max Loss: $937.5 (if SNDK ≤ $190)
Breakeven: $199.38
Source: Tiger Trade App
Notes:
You may be assigned if shares fall below $200.
Requires sufficient cash or margin.
Best for investors comfortable owning the stock or confident in SanDisk’s fundamentals.
Bearish on SNDK
3. Bear Call Spread
When to Use:
Neutral to bearish — suitable for traders expecting SNDK to stay below $325 and seeking premium income.
Structure:
Sell 1 × Nov 21 call @ $325
Buy 1 × Nov 21 call @ $335
$SNDK Vertical 251121 325.0C/335.0C$
Max Profit: $135
Max Loss: $865 (if SNDK ≥ $335)
Breakeven: $326.35
Source: Tiger Trade App
Notes:
Works best in high-IV environments.
Watch for assignment risk if SNDK rises above strike prices.
Avoid naked short calls unless sufficient margin is available.
4. Bear Put Spread
When to Use:
Moderately bearish outlook — expecting a pullback while limiting downside risk.
Structure:
Buy 1 × Nov 21 put @ $260
Sell 1 × Nov 21 put @ $250
$SNDK Vertical 251121 250.0P/260.0P$
Max Profit: $545 (if SNDK ≤ $250)
Max Loss: $455
Breakeven: $255.45
Source: Tiger Trade App
Notes:
Profits are capped below $250.
Suitable for cautious bearish traders seeking limited-risk exposure.
Consider rolling to different expirations for flexibility.
Disclaimer: Options involve significant risk and are not suitable for all investors. Traders should assess their risk tolerance and investment objectives before entering any positions.
$(SNDK)$
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