SanDisk Corp (NASDAQ:SNDK) enters the S&P 500 Index (SPX) today. The shares are surged as high as $237.77 in response, but have since pulled back, last seen flat to trade at $215.24. The 30-day moving average moved in as support last week, the stock now eyeing a 13.5% November gain.
Some of today's bounce could be attributed to short covering. Short interest has been building, and now represents 5.5% of the stock's available float.
Over in the options pits, call traders are targeting SanDisk stock straight out of the gate. So far, 26,000 calls have been exchanged -- quadruple the call volume typically seen at this point -- in comparison to 7,518 puts. The December 40 call is the most popular, with new positions being bought to open there.
SNDK tends to outperform options traders' volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) of 91 out of 100.
