Western Digital Stock Surges on Loan Buzz, Upgrade

Call traders are blasting WDC in response

Deputy Editor
Sep 20, 2023 at 11:00 AM
facebook X logo linkedin

Western Digital Corp (NASDAQ:WDC) hit a fresh 52-week high today, after Bloomberg reported Kioxia Holdings' lenders are planning to refinance 2 trillion yen ($13.5 billion) in loans to support a potential merger with the former's flash memory business. In addition, Exane BNP Paribas upgraded the shares to "outperform" from "neutral." 

At last glance, WDC was up 6.2% at $46.66, earlier hitting a peak of $46.89. The stock has been chopping higher, with help from its 80-day moving average. Since the start of the year, the equity is up 47.3%. 

Options bulls are chiming in on the news. So far, 15,000 calls have been exchanged -- eight times what's typically seen at this point -- in comparison to 1,821 puts. The weekly 10/13 47-strike call is the most popular, with new positions being opened there. 

These options are well-priced at the moment, too. WDC's Schaeffer's Volatility Index (SVI) of 33% sits in the low 9th percentile of its annual range, meaning options traders are pricing in low volatility expectations. 



How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.