WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 163.00

-0.4%

Nov 7 9:30 AM EST

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To: Art Bechhoefer who wrote (59912)	2/19/2016 2:07:11 PM
From: SiliconAlley	of 60323

Your suggestion regarding the sale of put options is ill advised for multiple reasons. If you look at the pricing on the options you recommend selling, you will see there is little or zero premium to lose. In fact, the bids for January '17 80 through 85's (puts) reflect a discount (negative premium). When selling an option, one cannot benefit from a loss of a non-positive premium. In addition, a major risk point is failure to attain requisite shareholder votes. Should Unisplendour close first, only the SanDisk vote is required. To close SanDisk without a Unisplendour close requires both the SanDisk and Western Digital vote. Neither of these votes is a slam dunk, nor assured. Should shareholder votes fail, you should not expect SanDisk to hold its value in the short term.

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