The put write I recommended had a two-day gain of 37.5 percent. The stock itself is up about 7.0 percent this week, which is in my range of acceptable short-term trading gains. SNDK, which closed Tuesday at $26.44, after hitting an intra-day high of $26.57, could be sold up to $27 as there is a negative story potential re Lexar Media (NDQ: LEXR).

Lexar is another stock I like, but yesterday they started in trial vs. Toshiba where Lexar is suing Toshiba for purportedly stealing what they claim is patented flash controller technology, which Toshiba may have then used in developing products in collaboration with SNDK (such as the new MP3 player brought out pre-Christmas).

Lexar is in a deal with Kodak (NYSE: EK) for a flash memory, which is a story that you ought to be following.

I have told you about my new Kodak digital camera that is all the rage. Digital is in; film is out " big time! As a result, Kodak, Sandisk and Lexar are all winners.

A mid-term hold strategy might be to split capital between SNDK and LEXR and let the stories unfold as they may over the next quarter, knowing that LEXR's financial reporting problems (i.e., top-line revenue growth) are going to bear fruit in a washout in this quarter, and that a surprise out-of-court settlement with Toshiba would be a bonus for both SNDK and LEXR.

I like the whole story here because it is a big picture play for the long term, but it is also a short-term traders play, with exciting technology and legal developments being reported daily. I also like the large cap Kodak involvement, although EK did get dropped from the Dow 30 in recent years.

If you are new to this stock play, here is a link to some current info.

BCara@BillCara.com