Shares of SanDisk rose 6.35% on Monday to close at $703.63, as U.S.-listed memory stocks broadly advanced. Wedbush analyst Matt Bryson said in a client note that contract pricing for DRAM and NAND flash in January already pointed to potential increases of 50% or more in the first quarter of 2026. More recent indications suggest that some contract prices have even posted triple-digit gains.
Options sentiment turns constructive
Options market positioning in SNDK currently reflects a broadly bullish bias. Implied volatility stands at 99.31%, placing it in the moderately elevated range at the 60.16th percentile of its historical distribution, suggesting options are relatively fairly priced.
Trading activity also points to a constructive outlook, with a put-to-call volume ratio of 1.37, indicating stronger activity in call options.
Open interest signals bullish positioning
For options expiring this Friday (March 20, 2026), open interest data shows a slight dominance of call positions. Total call open interest stands at 71,146 contracts, compared with 70,394 for puts, resulting in a put-to-call open interest ratio of 0.99.
Notably, the $350 strike put has the largest open interest at 3,446 contracts. Positioned just below the current share price, this level could act as a near-term “magnet” for price action. Meanwhile, significant open interest is also seen at the $200 put strike, likely reflecting either short put strategies or protective hedging.
Block trades highlight aggressive long-term bets
More strikingly, the June 2027 expiry has seen sizable purchases of deep out-of-the-money call options at the $1,000 and $1,020 strikes. Each saw 1,250 contracts traded, with total premiums of approximately $28.45 million and $28.02 million, respectively.
These trades represent relatively low-cost, high-leverage bets, signaling strong conviction among some investors in SNDK’s long-term upside—potentially driven by sustained demand growth in AI-related memory. The positioning implies expectations that the stock could break above the $1,000 level over time.
Positioning skewed toward upside exposure
Overall, large options flows are overwhelmingly concentrated in call options. The only notable put trade involved selling deep out-of-the-money $575 puts, a strategy typically used to collect premium with a neutral-to-bullish bias.
Taken together, the flow suggests a structured bullish positioning: limited-risk strategies such as call spreads in the near term, combined with outright purchases of far out-of-the-money calls to capture longer-term upside.
Outlook and strategy
In sum, SNDK’s options market reflects a strong structural bullish bias, with particular attention warranted on the large-scale accumulation of long-dated out-of-the-money calls.
With the stock already trading above the upper strikes of recent call spread activity, near-term volatility could increase. For income-oriented strategies, selling out-of-the-money puts at lower strikes (such as below $650) may offer relatively lower assignment risk. For investors seeking defined risk, call spreads—buying near-the-money calls while selling higher-strike calls—may provide a more balanced approach.
Market participants should closely monitor price action around the $700 level, where open interest is concentrated, as well as the implications of large long-dated bullish positions for longer-term sentiment.
