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Someone Just Bet $20 Million on SanDisk After the Stock Dropped. Here's the Read.

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Breakdown

0:04SNDK· ticker

Sandisk (SNDK) — earnings report, revenue up 20.25B, stock down 11%

  • Revs 8.97B vs 8.39B expected, +372% YoY
  • EPS $3929 vs $34.25, gross margin 84.6%
  • Data center revenue nearly doubled
  • Consumer fell 32%, net income 11.43B
2:10lesson

Options trade analysis: January 2027 call vs. August call

  • January 15 2027 1880 call, 162 days to expiry
  • 43% OTM, $19.6M premium, 105% IV
  • Break-even $276, 58% move needed
  • August 14 1750 call, 8 days to expiry
  • 33% OTM, $264K premium, 122% IV
4:05SNDK· ticker

Sandisk (SNDK) — guidance vs. delivery, 29% beat in Q3

  • Q3 2026 guided 4.6B, delivered 5.95B
  • Q4 guided 8B, delivered 8.97B
  • Beat pattern implies 11.8-12B revenue
  • Street reaction mixed, targets cut
4:06lesson

Analyst targets and market reaction to earnings

  • Analyst targets range 1300-3500
  • City Bank cut to 2100 from 2500
  • Jeffries cut to 1750 from 3000
  • Wells Fargo down to 1400
4:07SNDK· ticker

Sandisk (SNDK) — committed revenue, buybacks, and investor day setup

  • Minimum committed revenue 93.9B, 4.6x YoY
  • 2/3 of 2028 output already booked
  • 5 new long-term agreements since April
  • Buyback authorization expanded by 14B
4:08lesson

Signal vs. noise: Is the trade a signal or noise?

  • January call requires 58% move to break even
  • AI infrastructure cycle may continue
  • Market misunderstanding of earnings
  • Trader expects management to reinforce guidance

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