[Entering Credit Spread on Sandisk Corp (SNDK)]
Dear Member:
Sandisk Corp (SNDK) is down from resistance on fairly high volume already this morning after reporting a first quarter loss. I am placing an order to open a bearish call credit spread by simultaneously selling the May 45 calls (SWFEI) and buying the May 47.50 calls (SWFEW) for a credit of 65 cents before commissions. If the stock stays below $45 at expiration and no adjustments are made, this would yield a before commission return on risk of 35% in 21 days.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
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