Close Sandisk Options for a combined 41% return in 6 weeks

Sandisk reports earnings tomorrow, and there were several research notes today citing concerns over possible revenue guidance and analyst downgrades (link here).  Considering the weakness in the stock today and risk of additional downside we are going to exit our short puts and long calls.

We are buying back the April $67.50 Puts for $3.10, for a gain of 32.6%, and we are selling the April $70 Calls for $5.20 for a gain of 8.3%.  The total gain on this trade is 41.1%.