Daily Options Selling Strategy | Rubin Triggers a Storage Supply Crisis! SNDK Up Over 5% in Pre-Market—How to Capitalize on Storage Sector Momentum Using Options?

I. Market Barometer

The S&P 500, Nasdaq, and Dow Jones declined by 1.58%, 2.00%, and 1.80%, respectively, in the previous trading session. However, driven by AI-related demand and expectations of tight memory chip supply, the semiconductor sector showed resilience. The storage segment rebounded in pre-market trading today, with SNDK rising over 5%.

II. Focus on Hot Targets

SNDK: Major Cloud Providers Rush to Secure All Long-Term Contracts Through 2027; Tight Storage Supply Cycle Confirmed to Extend Into 2028

SanDisk closed down 0.20% in the previous trading session and has declined 10.28% over the past five trading days, yet it is up a staggering 592.24% year-to-date.

SNDK’s technical setup shows mixed signals. On June 10, the stock briefly surged to $1,764.65 intraday before retreating to close at $1,643, forming a long upper shadow that indicates significant selling pressure overhead. The 20-day moving average sits at $1,572, acting as a key near-term support level; meanwhile, the 200-day moving average remains well below the current price, reflecting a robust long-term uptrend. Implied volatility (IV) stands at 115%, sitting at the 92nd percentile, favoring options sellers.

Most memory-related stocks are trading higher in pre-market action, driven by news that $NVIDIA (NVDA.US)$ the Vera Rubin Observatory’s massive data demands have triggered a global storage supply crisis. According to the latest report from Digitimes Asia, cloud service providers (CSPs) have already locked in all long-term agreement (LTA) capacity through 2027: industry leaders have fully booked their available LTA capacity for 2027 and are now actively negotiating 2028 supply deals. Upstream manufacturing capacity has been heavily redirected toward NVIDIA AI servers and CSP requirements, with nearly all 2027 output already committed to CSP customers.

Industry consensus is coalescing around the view that the shortage in 2027 will be even more severe than in 2026. Supply chain sources widely expect the 2027 shortfall to exceed that of 2026, suggesting the strong pricing cycle in memory markets could extend into 2028.

Given the robust industry fundamentals, Wall Street analysts remain broadly bullish on the stock’s outlook. Bank of America recently raised its price target sharply to $2,100, underscoring that strong AI-driven demand will sustain the memory supply shortage. Based on the latest ratings from 15 analysts, the stock’s average price target stands at $1,899.67, with the highest target reaching $3,250.00—highlighting institutional confidence in the company’s long-term pricing power and earnings stability.

III. Seller Options Strategy

1. Cash Secured Put

Sell 1 contract of $SanDisk (SNDK.US)$ June 18, 2026, 1:50 PM ET — Estimated required margin (for reference only): $135,000 ($1,350 × 100)

Opportunity filtering logic:

Investors who do not yet hold a position but wish to participate in the AI-driven memory supercycle face technical pullback risks if they chase the stock at current elevated levels. However, the latest supply chain data provides the strongest validation yet for the long-term memory investment thesis—cloud giants have fully secured all 2027 long-term contract capacity, negotiations for 2028 supply have already begun, and industry consensus now points to shortages persisting through 2028.

By selling puts, investors can collect premium income to enhance the annualized return on idle cash if the stock consolidates at current highs or continues to rise (with current IV indicating rich option premiums). Should the stock pull back due to short-term profit-taking and approach the $1,350 strike price, investors would also have the opportunity to acquire shares at a significantly lower cost than the current market price.

IV. Risk Control Reminder

Although the seller strategy has a high probability of success, investors must still manage risks effectively:

– Position management is key:The biggest risk for option sellers lies in black swan events. It is recommended that margin exposure for a single underlying should not exceed 20% of total capital. Never sell options beyond your capacity for the sake of greedy premiums.

– Timely rolling of covered call options: When a covered call option becomes deeply in-the-money (stock price far exceeds the strike price), and if the underlying stock is still viewed favorably, decisively 'roll' the position — that is, close the current option by buying it back and simultaneously sell an option with a later expiration date and a higher strike price to avoid having the stock called away at a low price.

– Cash-secured put options warn of 'left-tail risk':For cash-secured puts, if the stock price collapses due to deteriorating fundamentals (rather than a normal pullback), do not hold on stubbornly. At this time, stop losses should be executed, or 'rolling down' can be employed to buy time and wait for volatility to normalize.

Make good use of the options seller zone to understand the income strategies for selling optionsEarn option premiums!

Options Risk Warning

An option is a contract that grants the holder the right, but not the obligation, to buy or sell an asset at a fixed price on a specific date or at any time before that date. The price of an option is influenced by various factors, including the current price of the underlying asset, the strike price, time to expiration, and implied volatility. Implied volatility reflects the market’s expectations for the level of volatility in the option over a future period. It is a data point derived inversely from the Black-Scholes option pricing model and is generally regarded as an indicator of market sentiment. When investors anticipate greater volatility, they may be more willing to pay a higher price for options to hedge risks, resulting in higher implied volatility. Traders and investors use implied volatility to assess the attractiveness of option prices, identify potential mispricings, and manage risk exposure.

Disclaimer

This content does not constitute any offer, solicitation, recommendation, opinion, or guarantee for any securities, financial products, or tools. The risk of loss in trading options can be substantial. In some cases, losses incurred may exceed the initial margin deposited. Even if you set contingency orders, such as 'stop-loss' or 'limit' orders, these may not necessarily prevent losses. Market conditions may make such orders unexecutable. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be responsible for any shortfall in your account resulting from such liquidation. Therefore, before trading, you should study and understand options and carefully consider whether such trading suits you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and the rights and obligations upon expiration. Options trading involves extremely high risks and is not suitable for all investors. Investors should read Characteristics and Risks of Standardized Options carefully before engaging in any options trading strategy.

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