How S&P 500 options action may help explain the rising volatility in memory stocks

Memory-chip stocks’ outsized swings are being linked to options positioning rather than just earnings headlines, according to Interactive Brokers chief strategist Steve Sosnick. In commentary Thursday, Sosnick pointed to intraday rallies after sharp early declines in SanDisk (SNDK) and Western Digital (WDC). After opening with double-digit losses, Western Digital was down 21.5% before trimming to about 8.5%, while SanDisk fell 13.8% and briefly cut to around 3%. Sosnick said this “dip buying” reflects broader market risk attitudes. He also cited Cboe data showing S&P 500 options turning more bullish, with a near-record-low put-call ratio of 0.83 alongside a record 4 million call contracts traded earlier in the week.