Sandisk (SNDK) has rallied hard off the lows, but the stock is still well below its June high.
That sets up an earnings trade aimed at more upside without paying for the whole stock move
Sandisk reports earnings Wednesday after the bell. Buying 100 shares near current prices would cost more than $140,000. Options offer another route, letting an investor gain exposure to 100 shares with less money upfront.
One possibility is a bull call spread. Each word describes part of the trade. Bull means the investor expects the stock to rise.