WDC is down 53% from its June high near $799, lagging peers, and has broken its 50-day then 200-day averages with RSI near 42 still pointing down. With earnings expectations very low and forward valuation not high, a bounce is possible; the stance is neutral-to-bullish, though a good report may not prevent a decline.

Western Digital is perhaps a little different from Micron. It is more comparable to Seagate Technology, and SanDisk as well,

Western Digital is lagging behind , having risen by only about 120% so far this year. I don't know why I say lagging behind , but in this area, Western Digital seems to be falling significantly behind its competitors.

It has fallen by about 53% from its all-time highs, which is much more than we have seen in some other names in this field.

Now, if we look at Western Digital on a one-day chart for a year, we get an idea of what the chart did with the parabolic move during the middle of 2026 and what we have seen over the past few months here.

If you look at it, we reached an all-time high of nearly $800 per share, and that was in June, $799 on the upside.

And there was that equivalent movement, which included all memory chip manufacturers . Now, we have the stock down 53% from those record highs. We have seen a slight rise over the past two sessions, but expectations for this stock remain relatively low ahead of this earnings report.

I saw it break below its 50-day simple moving average . That was in August, and now you see it falling below the 200-day simple moving average, a level it hasn't fallen below for more than a year and a half until now.

Therefore, it is breaking some key levels with respect to support. Now, look at the momentum. It is not surprising that we saw the Relative Strength Index (RSI) decline, and we were in oversold territory about a week ago below the 30 level.

Anything below the 30 level is considered oversold on a technical basis, but now we have seen that slight rise. We are standing at approximately 42 on the Relative Strength Index .

So, we haven't yet returned to the midpoint at 50. Therefore, the momentum is still downward with respect to the Relative Strength Index.

Now, there are two areas that need to be monitored with regard to resistance. Around 430 on the upside. That will be a high-volume trading area for us. Then above that, at approximately level 445.

Therefore, keep an eye on these areas if we see a surprise in the upward direction.

This context point is here at the 288 level. It may be a good base as support for the stock, but it is too far from the current stock price of approximately 366. Well, I think the expectations ceiling is very low before this report.

We've seen a lot of people pushing the call skew upward in the options market, because I think people expect that before earnings, the stock has fallen significantly. It has lost half its value, perhaps it's time for it to bounce back, isn't it?

The valuations are not very high for the stock in terms of its forward price-to-earnings ratio. Therefore, I wanted to take advantage of the high implied volatility prior to this report.

A move of about $25 or $26 up or down is expected on a daily basis, but I wanted to take a definite direction without being aggressive because anything can happen. A good report may not prevent a decline.

So I looked at something calm, which is a neutral-to-bullish "Vertical Pot" strategy . I headed to the weekly session for October 23rd. Very short-term concentration, one day before expiry.

We will sell a put option at an execution price of 350 outside the range, and then buy a put option at an execution price of 340. Therefore, the "Vertical Put " strategy is neutral to bullish with a bid of $10.

If the stock opens at 366, we will have approximately a credit balance of about $3. This means a profit of $300 per spread with a risk of $700. This is the context you have. The breakeven point drops to 347.

So I have a large safety margin to go down by about 5% before I start to experience losses.