What's Next For SanDisk Stock - Quantitative Analysis Simply Explain - 5X Option Strategy
In this video, I will go over what has happened to SanDisk stock for the last couple of months and why this stock has still been rallying like crazy after earnings. The reason is known to many investors, there is a memory shortage and SanDisk is one of the biggest suppliers.
These hyperscalers like Meta, Google, Amazon all need memory to store their a.i. models on. Also Apple has now iPhones where the lowest memory is 256GB compared to 64GB a few years ago. This increase in memory is what drives the surge in SanDisk Stock.
However, there are some dark clouds forming over this stock and it has to do with technical factors as well as fundamentals. The expectation of the stock is that it will keep rising the next 60 days like the previous 60 days. This is a bold expectation and it is why calls are so crazy expensive. This narrative also create opportunities.
The puts on on SanDisk are extremely cheap given that most buyers are positioned on the upside. If the 60 days volatility is higher than we expect, they might even be right! imagine SanDisk hitting 2500 in August! This is the expectation atleast.
However, the opportunity is on the downside. Puts are really cheap! Even though the next 60 days might be less volatile, the drop in put values would be smaller compared to the drop in call values. Moreover, if China or any other country makes a deal with the hyperscalers and Nvidia, AMD and other chipmakers, then SanDisk is out of moat. This will be a dramatic blow to the stock price as well. Imagine Nvidia saying at their earnings call: we had a memory shortage but it is shrinking dramatically!
#howtoinvest #howtotrade #finance #financialfreedom #money #markets #stocks #sandisk #nvidia #meta #amd #aapl #microsoft #google #googl #trading #trader #investing #investor #stocks #stocktrading #howtotradestocks #stocktradingforbeginners #stockmarket #robinhood #robinhoodstock #robinhoodtrading #robinhoodstock #stockanalysis #tradingforbeginners #investingtips #investingbasics #hyperscalers #meta #amd #arm #intel #wdc #walmart #earnings #earningscall #optiontrading #optionbuying #optionchainanalysis