SanDisk (SNDK) Appears On The Investors Observer Volume Leaders List

Posted: Friday, September 03, 2010 8:47 AM EDT
By: Market Intelligence Center Staff

SanDisk (NASDAQ: SNDK) closed yesterday at $36.01. So far the stock has hit a 52-week low of $16.63 and 52-week high of $50.55. SanDisk stock has been showing support around 33.30 and resistance in the 37.70 range. Technical indicators for the stock are Bearish and S&P gives SNDK a neutral 3 STAR (out of 5) hold rating. SNDK appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '11 35 covered call for a net debit in the $30.81 area. That is also the break even stock price for this trade. This covered call has a 141 day duration, provides 14.44% downside protection and a 13.60% assigned return rate for a 35.20% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the SNDK Jan '12 15 Call and selling the Jan '11 35 call for a $17.05 debit. The trade has a 141 day life and would provide 11.00% downside protection and a 17.30% assigned return rate for a 45.00% annualized return rate (for comparison purposes only). SanDisk does not pay dividends at this time. [FBB-Seven Summits Research]