Sandisk’s 16% Gap Up Draws 79% Call Flow, but Trend Remains Down

By Grace Kim

At 11:45 a.m. ET on Nov. 11, Sandisk Corporation (SNDK) had drawn $184.8 million in options premium, with 79% of the money in calls, according to GTA Terminal's intraday chart.

SNDK gapped 16% above its four-day base and traded near $1,000 at midday. GTA Terminal recorded the gap opening at $928.24, above the four-day range of $803.97-$914.82. The stock's high so far was $1,011.05, just under the Nov. 4 low of $1,014.00.

That leaves the Nov. 4 low as the first test in GTA Terminal's setup. A close through $1,014.00 with call premium still building would confirm the chart's read and open the path to the 20-day simple moving average at $1,168.95.

What does the options flow show?

GTA Terminal's Nov. 11 options snapshot, taken at 11:45 a.m. ET, showed $146.0 million in calls and $38.8 million in puts. Calls accounted for 79% of total premium, and the put/call volume ratio stood at 0.52. The source also counted 58 strikes that traded above their open interest.

The largest named option positions were:

• Nov. 13 $980 calls: 1,509 traded versus 486 in open interest, with $6.5 million in premium.
• Nov. 13 $975 calls: 1,305 traded versus 309 in open interest, with $6.3 million in premium.
• Nov. 20 $970 puts: 1,847 traded versus 146 in open interest, with $8.7 million in premium.

All three positions traded above the open interest recorded at their respective strikes. GTA Terminal identified the Nov. 20 $970 puts as "the hedge side." The hedge carried more premium than either named call position, though the day's aggregate flow still favored calls.

Call money dominated the session, while GTA Terminal tracked an $8.7 million put hedge at the Nov. 20 $970 strike.

Has Sandisk reversed its downtrend?

Not yet, according to GTA Terminal's daily technicals. At midday, Sandisk traded below the 20-day SMA at $1,168.95, the 50-day at $1,467.55, the 100-day at $1,522.55 and the 200-day at $1,278.76.

GTA Terminal said the trend remained down after the stock's slide from its 60-day high of $1,909.48. The 20-day SMA was the closest of those four averages to the midday share price.

Two indicators supplied context. RSI 14 was turning up at 38.6 after the recent dip toward oversold. Volume stood at 0.95 times the 20-day average. GTA Terminal still classified the overall trend as down.

RSI was improving, but price remained below every major moving average in GTA Terminal's framework.

How large was the off-exchange trade?

GTA Terminal reported that 6,674,691 shares traded in dark pools on Nov. 10, equal to 48.8% of volume. The source described that off-exchange share as above the stock's normal level.

Nearly half of Nov. 10 volume occurred away from regular exchanges, making off-exchange activity a material part of GTA Terminal's read.

What levels define the next move?

GTA Terminal mapped four key levels:

• $1,168.95: 20-day SMA and resistance.
• $1,014.00: Nov. 4 low and first resistance.
• $914.82: Top of the four-day base and gap support.
• $803.97: Nov. 5 low, the 60-day low and the setup's invalidation level.

The path from the opening gap had three outcomes in GTA Terminal's framework. A close through $1,014.00 with continued call-premium building would confirm the read and open the 20-day SMA at $1,168.95. A move back below $914.82 would fill the gap and weaken the setup. A break below $803.97 would break the base.

GTA Terminal labeled the analysis "Not financial advice." For its setup, the next test is whether Sandisk can hold the 16% gap and close above $1,014.00 while call buyers keep adding premium; failure below $803.97 would invalidate the base.