Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Bridge Player who wrote (35313)	2/16/2007 5:01:36 PM
From: Pam	Read Replies (2) \| Respond to of 60323

Frankly, I am also surprised with the timing of this announcement but not with the announcement itself. The margin pressure was coming in the next month or two and it seems the company wanted to get it out of the way before the upcoming AD on Feb 26. I am sure those who have written/purchased options have a lot to worry about but wouldn't it be a bigger problem if he would have done it before the options expiration? It doesn't seem like the news was leaked in any way though. Today's action seemed typical- expire at 40 so maximum Calls and Puts expire worthless and some of the big guys pocketed the premiums from both directions! If he would have made this announcement a few days earlier, there would have been a lot more volatility IMHO. Frankly, they just had their earnings out about 2 weeks ago and they should have guided lower back then itself! Not much has changed since than. Spot prices are in the same $4.75-5.00 range for 1GB over the last 2 weeks! Surprisingly, the volume in after-hours is relatively light with this announcement but then it's a long w/e and many people have taken a day off today also.

To: Bridge Player who wrote (35313)	2/16/2007 5:18:44 PM
From: Pam	Respond to of 60323

I will bet money that those option players who were short the Feb 40 puts and thought they had safely expired, will be in for a rude awakening on Tuesday. I know from sad experience that after hours trading on an expiration day DOES count. I have been assigned stock only once so excuse my ignorance but is it true that even though the stock officially closed at $40.13, those who had Sold Feb 40 Puts will get SNDK assigned because of what happened after-hours? If that is the case, then I agree with you that this announcement shouldn't have happened today period.

To: Bridge Player who wrote (35313)	2/17/2007 9:38:29 AM
From: Rich Wolf	Read Replies (2) \| Respond to of 60323

Regarding options: This may depend upon one's broker. Ameritrade does not execute open option orders during the extended-hours trading period. I have had open GTC orders during periods of volatility in the after-hours sessions which did not get executed. I cannot speak to whether option expiration days are treated differently. From the Ameritrade site: "Options, mutual funds, and bonds do not trade during our extended-hours trading session; orders for these types of securities will be rejected or canceled."