The March 16 setup on SanDisk Corp (SNDK) played out exactly as structured, with price staying well below the risk zone and both options expiring worthless.
This post is slightly delayed — I was away on a short trip with limited internet access.
Despite continued strength on the daily timeframe, the broader context pointed to a late-stage extension rather than a fresh expansion phase.
The stock had already experienced a significant multi-month advance, and prior weekly price action suggested that distribution had begun to appear.
That context shaped the positioning for this trade.
During the week, SNDK continued to push higher, but the move lacked the type of acceleration required to threaten the short strike.
By Friday’s close, price remained comfortably below the 890 level, allowing the full premium to be captured.
The spread never came under pressure, illustrating how distance and probability can outweigh premium size when volatility is elevated.
By expiration on March 20, both options expired completely out-of-the-money.
Trade Recap
Structure: Bear Call Spread
Expiration: Mar 20, 2026
Short Call: 890C
Long Call: 900C
Contracts: 9
Net P/L: +$224
👉 View on OptionStrat
👉 View in Trade Log
Post-mortem
This trade deviated from the standard 10-delta framework and leaned further into probability positioning.
→ SNDK was in a strong multi-month uptrend, extended across higher timeframes
→ A prior weekly bearish candle suggested early signs of distribution after the rally
→ Daily momentum remained positive, but lacked clear expansion characteristics
→ The short strike was placed in the ~5-delta zone, prioritizing distance over premium
→ Despite continued upside movement during the week, price never approached the risk area
By expiration, SNDK closed well below the short strike, allowing the spread to expire worthless and capture 100% of the premium.
When a market remains extended and begins to transition into late-stage behavior, positioning further out on the curve can provide consistency — even if it comes at the cost of smaller absolute returns.
Disclaimer
All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.