SNDK Dance: Sell Puts, Hold Calls

Targeting a Move to $50

By Bryan Bottarelli

Friday, October 21, 2011 9:58 AM EDT

Fri, 21 Oct 2011 13:58:00 GMT

PLAY: Sell your SNDK November 46 Puts (O:SNDK 11W46.00) at market, good for the day. Hold your SNDK November 48 Calls (O:SNDK 11K48.00).

Dear Bottarelli Research Member,

In order to make any sort of profit on SanDisk (SNDK – NASDAQ), we need to chop off one side of our earnings strangle and ride the other side higher. This is what we did with AXP, and the result this morning was a conservative 19% gain. Now, let’s do a similar dance on SNDK.

That is, let’s use the $50 target as our guide and ride our SNDK November 48 Calls (O:SNDK 11K48.00) into the profit zone. On the same token, let’s also cut off our SNDK November 46 Puts (O:SNDK 11W46.00) now before they get even cheaper. If we properly execute this little maneuver, we’ll come out on top. So, let’s do it now!

PLAY: Sell your SNDK November 46 Puts (O:SNDK 11W46.00) at market, good for the day. Hold your SNDK November 48 Calls (O:SNDK 11K48.00).

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Editor, Bottarelli Research

Featured in this Alert:

Disclaimer

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Premium Subscriptions

For specific buy and sell recommendations, subscribe to a Bottarelli Research trading advisory service.