Question: What options are you guys running on WDC? Is this type a put you would sell? WDC closed at $431.52 on 01 MAY 26. For clarity, I'm not looking for anyone to tell me what to do but rather a discussion around an option similar to this or to discuss what you're running.
Idea: Sell a put to target the lowest analyst price target as the strike. Timing would be before the next earnings report to incorporate a typical run-up. Ideally, sell the put on a red day (AI scare, White House admin does something to spook stocks, etc.)
Option Idea:
SELL OPENING TRANSACTION PUT (WDC) JUL 17 26 $310 – PREMIUM $12.80
- (Stock price was ~$430 on 05/01/26)
or
SELL OPENING TRANSACTION PUT (WDC) JUL 17 26 $310 – PREMIUM $24.00
- (Stock price was ~$380 on 4/28/26)
Option Flow: as of market end on May 1st, there is small volume flowing into 450 C and 500 C for the JUL 17 26 expiry.
Potential Problem: If cloud hyperscalers determine they need to cut back on build-out/ cancel a long-term contract, that affects WDC since it is a majority of WDC’s revenue. The stock price would pull back. Additionally, I’ve read about the heavy reliance on China and that any change in tariffs could disrupt the supply chain.
Price Targets: On May 1st, I asked Gemini to list 20 price targets:
Cantor Fitzgerald, C.J. Muse, $660.00, "May 01, 2026"
Bernstein SocGen, Stacy Rasgon, $590.00, "May 01, 2026"
BofA Securities, Wamsi Mohan, $575.00, "May 01, 2026"
TIKR Valuation Model, Algorithm, $514.71, "Apr 26, 2026"
TD Cowen, Krish Sankar, $500.00, "May 01, 2026"
Rosenblatt, Kevin Cassidy, $500.00, "May 01, 2026"
Mizuho, Vijay Rakesh, $470.00," May 01, 2026"
Citigroup, Asiya Merchant, $405.00," Apr 13, 2026"
Barclays, Tom O'Malley, $405.00," Apr 22, 2026"
Goldman Sachs, Toshiya Hari, $400.00, "May 01, 2026"
JPMorgan, Harlan Sur, $400.00, "Apr 16, 2026"
Morgan Stanley, Erik Woodring, $380.00, "Apr 06, 2026"
UBS Group, Timothy Arcuri, $375.00, "May 01, 2026"
Simply Wall St, Consensus,$372.00, "Apr 27, 2026"
Quiver Quantitative, Median, $345.00, "May 01, 2026"
Sanford Bernstein, (Previous), $340.00, "Mar 31, 2026"
ChartMill Consensus, Mean, $333.87," Apr 30, 2026"
Wedbush, Matt Bryson, $321.00, "Mar 16, 2026"
Robert W. Baird, Tristan Gerra, $310.00, "Feb 02, 2026"
Truist Financial, William Stein, $310.00, "Feb 03, 2026"
Not Ideal Outcome: WDC dumps to $270 on June 17th, resulting in a large, negative unrealized loss in your account that you have to hold for another month. Then, WDC closes at $290 at the end of after hours on JUL 17 26, below your cost basis of $297.20, meaning your position is opened with a -700.20 loss.
Ideal Outcome(s): WDC stays above $310 on expiry (JUL 17 26) and you/ I collect $1,280 – $2,400 (etc) in premium Or WDC price breaks out, decreasing the price of the contract which allows you/I to buy it back cheaper, thereby closing the transaction with a profit
My Position: 15 shares at a cost basis of $403.34. I have the cash for the assignment and recent had to watch myself be down -$12k on CRWV before it's recent bounce-back so being down wouldn't phase me. I'm Option Tier 3 so the money isn't tied up while the contract is active like it would be for Tier 2.
My Ideal Move: Sell the put during another downswing to $390, post this earnings period (~$2,400) and close around (~$1,300) to collect $1,100 in profit.
Posted by visionarywatts