SanDisk Stock Price Prediction: Surges 11% on Heavy Volume to Approach $1,800, Can SNDK Unlock Further Upside?

Among the contracts expiring on October 2, SanDisk call options with a $1,600 strike price involved approximately 4,200 contracts with premiums totaling around $41 million, while Micron $1,000 calls saw roughly 10,000 contracts with about $44 million committed. Large call trades were also observed in Intel and Marvell, though their capital size was significantly smaller than that of the former two. Intraday data disclosed by Benzinga showed that SanDisk and Micron absorbed the vast majority of the premium.

At the time of the trades, SanDisk's share price was already above the $1,600 strike price, while Micron was hovering near $1,000. With less than two weeks left until expiration, these contracts were highly sensitive to fluctuations in the underlying stock while also facing rapid time decay. Such trades require the stock price to continue rising within a short window; otherwise, the value of the options could decline rapidly.

Heavy trading volume in call options can also provide a boost to the spot market. If market makers are net sellers of the options, they typically need to buy the underlying stock to hedge their risk. As the stock price rises and the option's delta increases, market makers may continue to add to their stock positions, thereby amplifying the short-term rally. However, trading volume data alone cannot determine whether these trades were directional buys, spread combinations, or closing transactions; therefore, unusual options activity cannot be taken as a direct signal that the stock price is bound to rise.

Source: TradingView

SanDisk shares surged 10.99% in a single day to close at $1,791.82, near the intraday high of $1,797, accompanied by a noticeable expansion in trading volume that points to strengthening buying power. The stock has reclaimed its 20-day moving average of $1,591.42 and 60-day moving average of $1,578.08, signaling a firming short-term trend.

Currently, the most critical resistance lies between $1,800 and $1,830.90, which coincides with both the neckline of an inverse head-and-shoulders pattern and the 0.618 Fibonacci level. If the daily chart holds above $1,831 on strong volume, the pattern breakout will be confirmed, with the next targets seen at $2,000 and $2,071.60, and further attention on the previous high of $2,348.66.

The RSI has risen to 61.43, remaining above the signal line of 54.52, indicating strong momentum while not yet overbought. However, if the stock fails to break above $1,831, it may experience a short-term pullback to $1,670.96; more crucial support sits in the moving average zone of $1,578–$1,591.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.