Here’s how I’m getting started in building this new long position…
Here’s how I’m getting started in building this new long position. At the current quote of $42 or so, the stock’s down 20% from its recent highs at $53 and at only 5x next year’s earnings when you include the cash-heavy balance sheet, I do think we could catch a double or better in coming months if the company can just deliver on current estimates. And on top of all that, the calls in Sandisk are remarkably cheap given how volatile this stock can be. I’m starting by buying some slightly in-the-money calls, say the $40-42 price range dated out in January 2012.