NEW DIRECTIONAL CALL PLAYS

SanDisk Corp. - SNDK - close: 70.22 change: +1.20

Stop Loss: 67.90
Target(s): 74.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SNDK is in the technology sector. The company makes flash storage devices. The stock has had an excellent month after shares rallied following its earnings report. Wall Street was expecting Q3 earnings of $1.32 on revenues of $1.57 billion. SNDK beat both estimates with $1.59 a share on revenues of $1.63 billion. Management went further and raised guidance yet again. The post-earnings move pushed SNDK through resistance near $64. Now shares are trying to rally past round-number resistance at $70.00.

The October 22nd high was $70.49. I am suggesting a trigger to buy calls at $70.60. If triggered our target is $74.75 but we may want to aim higher. The Point & Figure chart for SNDK is bullish with an $82 target.

NOTE: SNDK will begin trading ex-dividend on October 31st. The quarterly cash dividend should be 22.5 cents.

Trigger @ 70.60

- Suggested Positions -

Buy the 2014 Jan $72.50 call (SNDK1418a72.5) current ask $2.67

Annotated Chart:

Entry on October -- at $---.--
Average Daily Volume = 5.0 million
Listed on October 28, 2013