In the inaugural issue of Breakthrough Tech Profits, I recommended disk drive manufacturer Western Digital (WDC) as a play on growth in the SSD (solid state drive) market due to its recent acquisition of SanDisk. Although I felt the benefits from that transaction would be realized sooner than most other analysts expected, even I had no idea the stock would begin performing so well this soon. At the end of that article I also suggested an options play on WDC that has already gained more than 60% due the leveraged nature of LEAPS:

“For example, a call option with a strike price of $45, only slightly out-of-the-money at the moment, can be bought for roughly $8, resulting in a break even point of $53. If the share price of Western Digital gets to $60 in 18 months, then this option would have an intrinsic value of $15 for a gain of better than 80%. Only experienced option traders with a high tolerance for risk should consider engaging in this type of transaction because there is also the risk of full loss.”

Since we have already captured nearly 80% of that expected gain in less than two months, we feel its time to take it and roll those profits into some new option recommendations that we will be providing in the upcoming issue of Breakthrough Tech Profits this Thursday.