Thoughts on the short hedging strategy for $SNDK
Recently, a number of Crypto funds have been gathering to short $SNDK . If you want to profit from the bubble squeeze in Sandisk while also worrying that the storage sector could continue to rise and cause naked shorts to get “squeezed,” then pairing and hedging by going long 0.7x $MU + 0.3x $SKHY is a highly cost-effective option.
$SNDK’s weakness is that its business is overly single-focused. It is highly dependent on data-center enterprise SSDs and NAND, with very high sensitivity to the cycle, and its current valuation bubble is enormous.
Meanwhile, Micron and SK hynix’s capacity is more focused on DRAM and HBM (the underlying hardware for AI large-model inference). This is a more bottleneck-driven, more essential direction, and Micron also has long-term forward purchase orders to provide support. The fundamentals are more solid and the bubble is smaller.
The core of this hedge is to capture the “bubble spread” between the two. When the broader market falls, Micron and SK hynix tend to hold up better than Sandisk. When the market continues to rise, the long side can also lock in risk. The result is a long-term holding advantage characterized by low volatility and strong drawdown resistance.#闪迪股价涨近14%
Recently, a number of Crypto funds have been gathering to short $SNDK . If you want to profit from the bubble squeeze in Sandisk while also worrying that the storage sector could continue to rise and cause naked shorts to get “squeezed,” then pairing and hedging by going long 0.7x $MU + 0.3x $SKHY is a highly cost-effective option.
$SNDK’s weakness is that its business is overly single-focused. It is highly dependent on data-center enterprise SSDs and NAND, with very high sensitivity to the cycle, and its current valuation bubble is enormous.
Meanwhile, Micron and SK hynix’s capacity is more focused on DRAM and HBM (the underlying hardware for AI large-model inference). This is a more bottleneck-driven, more essential direction, and Micron also has long-term forward purchase orders to provide support. The fundamentals are more solid and the bubble is smaller.
The core of this hedge is to capture the “bubble spread” between the two. When the broader market falls, Micron and SK hynix tend to hold up better than Sandisk. When the market continues to rise, the long side can also lock in risk. The result is a long-term holding advantage characterized by low volatility and strong drawdown resistance.#闪迪股价涨近14%