Tech Swoon Doesn't Spook Western Digital Corporation (WDC) Bulls

Western Digital Corp (WDC) speculators are gambling on a near-term rebound

by Andrea Kramer

Published on Mar 12, 2015 at 1:07 PM
Updated on Jun 24, 2020 at 10:16 AM

Western Digital Corp (NASDAQ:WDC) is bucking the broad-market uptrend, yet option players remain optimistic. The shares are down 0.6% at $97.30, following the lead of Microsoft Corporation (NASDAQ:MSFT) and other tech components suffering in sympathy with Intel Corporation (NASDAQ:INTC).

Still, WDC calls are crossing at nearly twice the average intraday clip, and have outpaced puts by a margin of almost 4-to-1. Traders are apparently buying to open the April 105 call -- the most active on the day -- betting on the stock to muscle into triple-digit territory by the close on Friday, April 17, when back-month options expire. Delta on the call sits at 0.22, implying a less than 1-in-4 shot of expiring in the money.

Should Western Digital Corp (NASDAQ:WDC) remain in the red today, it will mark the third straight finish south of the century mark, as well as its psychologically significant 200-day moving average. What's more, should the equity extend its slump -- WDC is down 12% year-to-date -- a flood of downgrades could exacerbate selling pressure. Currently, 14 out of 17 analysts maintain "buy" or better endorsements.

Daily Chart of WDC since October with 200-Day Moving Average

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