SanDisk Corp (SNDK)
The most active stock option for SNDK this morning was the Jan 08 45 puts.? A total of 11,597 of these contracts have changed hands today. The predominance of these contracts traded in a single multi-market sweep order (7,518 contracts) that was executed around 10:50am. The majority of this activity appears to be buyer initiated.
The motivation behind these trades is something of a mystery. There was no news noted today that might have stirred this activity. Earnings also are not a driver for these trades since SNDK’s earnings are not due to be released until October 18th.
It is possible that the buyer is concerned about Microsoft?s Zune media player stealing SNDK market share. However, the poor performance of the Zune media player to date makes that scenario unlikely.
It is also possible that the disappointing earnings released by Micron Technology on Tuesday might just be a sign of the times. As a result, the buyer may hedging against, or speculating on, a significant downturn in the memory market.
Posted By: Trade Alert
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