The strategy I’m employing on Sandisk now that it’s popped…
The markets are flattish to down, but our portfolio is busting out to new highs again off the back of the big Sandisk pop this morning. Sandisk reported a great quarter as I’d noted last night and the stock is indeed up nearly 10% this morning. Recall that yesterday I outlined some aggressive call buying. With this big pop it’s time to take some profits because those calls kick in and make this position outsized as our biggest now, much like the Google calls did last week after they popped. (I sold Google down but it’s still outsized too and I am still planning to trim some more calls in that one too.) The strategy I’m employing on selling these Sandisk calls is to sell the closest-expiration dates with the lowest strike prices. That will leave you with your longer dated, higher priced calls which as I’ve explained before (and will again later) provide upside leverage and a natural downside stop loss level.
Oh and Microsoft reported last night. Stock is up a penny. Quarter was strong, Kinect is on fire (good for Marvell I do believe), and cash continues to build. Steady as she goes in that name.
