$Sandisk(SNDK.US) The options market currently expects a stock price volatility of up to ±19% after the earnings report, which is significantly higher than the implied volatility in previous earnings reports.
Since its relisting, SNDK has seen its stock price rise in 4 out of the last 5 earnings reports, with an average single gain of about 6.1%. However, the market's bet on volatility space has clearly expanded this time, with the expected 19% volatility being nearly twice the previous average level.
In short, this earnings report might be very exciting.
However, as option premiums are pushed up by market sentiment, for some traders, this could instead become an opportunity to sell high-premium options and profit from the decline in volatility.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.