“Way too much too quickly,” That’s what Scott Bauer said about SanDisk (SNDK).
The stock has been on an absolute tear.
SanDisk climbed nearly 1265% in the last six months, and almost 132% in 2026.
There were a few drivers behind SanDisk’s massive run:
- The February 2025 spinoff from Western Digital created SanDisk as a pure-play NAND flash memory and SSD company
- SanDisk benefited from a critical NAND bottleneck amid surging needs for high-capacity flash storage in AI data centers and hyperscalers
- Industry-wide supply constraints couldn’t keep pace with AI buildouts, resulting in a severe NAND flash shortage—causing prices to skyrocket
- SanDisk posted multiple quarters of blowout results and upward guidance revisions that fueled investor enthusiasm, short squeezes, and repeated analyst upgrades
The momentum snowballed bigtime for SanDisk…
But like Scott said, sometimes a stock can go up “way too much too quickly.”
The stock fell into a pullback, dropping more than seven percent since Monday. Moments before Monday’s reversal, Scott gave a timely trade example for SanDisk on the Schwab Network.
He outlined a bearish trade setup, going against the stock’s massive run.
In his trade example, Scott said he would consider entering around $7. The options for this setup would have been $13 yesterday afternoon—meaning Scott’s trade showed an 87% result!
This wasn’t a trade Scott chose randomly. He explained the reasoning behind his bearish trade example, his long-term prospects for the stock, and the near-term moves he was looking to see in SanDisk.
The analysis, insights, and strategies shared by Prosper Trading Academy’s coaches in Prosper Insider are strictly for educational and informational purposes only. All content reflects the personal opinions of the coaches and should not be construed as specific investment advice or recommendations. Any examples discussed are illustrative in nature and do not represent actual live trade signals or instructions to buy or sell securities. Trading involves risk, and individuals should carefully evaluate their own financial situation before making investment decisions.
Scott’s analysis covers:
- The bearish setup in his trade example
- Near-term expectations for the stock
- Why he believed the stock moved “way too much way too quickly”
- His long-term outlook for SanDisk
- The “reversion” he’s looking for in the stock
