SNDK – SanDisk Corporation – Options traders with long-term bullish views on SanDisk Corp. sold in- and out-of-the-money put options in the October and January 2011 contracts this morning with shares of the underlying stock rallying 3.00% to $42.71 by 11:40 am (ET). Investors expecting SanDisk’s shares to continue to climb in the next several months sold 1,000 puts at the October $42 strike to pocket an average premium of $5.025 apiece. Put sellers keep the full premium received today as long as the price of SanDisk’s shares exceeds $42.00 through October expiration day. Optimism spread to the higher October $43 strike where 1,000 in-the-money puts were sold at a premium of $5.50 each. Investors short the October $43 strike puts walk away with the full premium pocketed today if shares are trading above $43.00 ahead of expiration. Another optimistic options player anticipating sharp share price appreciation for SanDisk sold 1,200 deep in-the-money puts at the January 2011 $47 strike to take in a premium of $9.75 per contract. The trader responsible for this transaction keeps the full premium received if SNDK’s shares rally at least 10.00% to trade above $47.00 by expiration day in January 2011. Investors short the puts are apparently happy to have shares of the underlying stock put to them should the puts land in-the-money by expiration day. Traders selling the October $42 and October $43 strike puts could have shares put to them at $36.975 and $37.50, respectively, while the investor selling the January 2011 $47 strike puts may have shares put to him at an effective price of $37.25 each.