Western Digital Surges 6.45% on Earnings Optimism and Sector Momentum

Summary
• Western Digital (WDC) trades at $173.465, up 6.45% intraday
• Intraday high hits $175.475, matching 52-week high
• Sector leader Seagate (STX) gains 5.17% on cloud storage demand

Western Digital’s stock surged over 6% on November 10, 2025, driven by robust Q3 earnings and a new dividend program. The rally aligns with broader storage sector strength, as cloud and AI-driven demand fuels optimism. With the stock nearing its 52-week high, traders are scrutinizing technical and options data for momentum signals.

Earnings Outperformance and Dividend Hike Drive Western Digital's Rally
Western Digital’s Q3 fiscal 2025 results, released on April 30, 2025, revealed $2.29 billion in revenue and $2.11 GAAP EPS, surpassing expectations. Cloud revenue grew 38% YoY, while the company announced a $0.10 quarterly dividend. The 25% dividend increase and strong cloud demand—driven by AI and hyperscale storage—catalyzed investor enthusiasm. Additionally, the separation of Sandisk in February 2025 streamlined operations, enhancing focus on core HDD growth.

Storage Sector Gains Momentum as Seagate Surges 5.17%
The Technology Hardware, Storage & Peripherals sector saw Seagate (STX) rise 5.17% alongside WDC’s rally. Both stocks benefited from surging cloud storage demand, with AI and enterprise data growth driving sector-wide optimism. While WDC’s HDD-centric model outperformed, STX’s hybrid HDD/SSD strategy also gained traction, reflecting broader confidence in data storage’s secular growth.

Options and Technicals Signal Aggressive Bullish Setup for WDC
• 200-day average: 71.82 (well below current price)
• RSI: 78.75 (overbought territory)
• MACD: 12.59 (bullish divergence from signal line)
• Bollinger Bands: Price at 173.465, above upper band of 168.51

Western Digital’s technicals suggest a continuation of its bullish trend, with key resistance at $175.475 (52-week high) and support at $169.32 (intraday low). The RSI’s overbought level and MACD’s positive divergence indicate momentum, though a pullback to the 200-day average could trigger short-term volatility. Two options stand out for aggressive bulls:

• WDC20251114C175 (Call, $175 strike, Nov 14 expiry):
- IV: 74.33% (high volatility)
- Leverage ratio: 31.76% (moderate)
- Delta: 0.486 (sensitive to price moves)
- Theta: -1.230 (rapid time decay)
- Gamma: 0.026 (high sensitivity to price shifts)
- Turnover: $606,519 (liquid)
- Payoff at 5% upside: $16.63/share (max(0, 182.14 - 175))
- Why it stands out: High gamma and IV make this call ideal for a sharp move above $175.

• WDC20251114C185 (Call, $185 strike, Nov 14 expiry):
- IV: 70.22% (moderate)
- Leverage ratio: 91.43% (high)
- Delta: 0.236 (less sensitive)
- Theta: -0.752 (slower decay)
- Gamma: 0.0216 (moderate sensitivity)
- Turnover: $211,601 (liquid)
- Payoff at 5% upside: $7.14/share (max(0, 182.14 - 185))
- Why it stands out: High leverage ratio amplifies returns if WDC breaks above $185.

Action: Aggressive bulls may consider WDC20251114C175 into a breakout above $175, while WDC20251114C185 offers high leverage for a sustained rally.

Backtest Western Digital Stock Performance
Unfortunately, the event-back-test engine ran into an internal execution error that prevented it from producing the statistics and charts we need. (The error is inside the engine code itself – it is not caused by your request or by the data we prepared.)To move forward you have two practical options: 1. Retry with a simplified approach • Instead of using the event-back-test engine, we can convert each “≥ 6 % intraday surge” day into an “open” signal and run a conventional strategy back-test. • We would then decide a fixed exit rule (for example, sell five trading days after each surge, or use a 10 % stop-loss / 15 % take-profit, etc.). • This route bypasses the part of the pipeline that just failed.2. Wait for the event-back-test engine to be patched • If you prefer the specialised post-event analytics (average drift curves, optimal holding window detection, etc.), we can re-run the same request once the engine is fixed.Please let me know which path you would like to take (or if you have a different exit rule in mind), and I will proceed immediately.

Bullish Momentum Unlikely to Subside—Act on Key Levels
Western Digital’s rally is underpinned by strong earnings, a new dividend, and AI-driven cloud demand. The stock’s proximity to its 52-week high and overbought RSI suggest a test of $175.475 is imminent. Traders should monitor the 200-day average ($71.82) as a critical support level. Meanwhile, sector leader Seagate (STX) gaining 5.17% reinforces the case for storage stocks. Act now: Buy WDC20251114C175 if $175 breaks, or WDC20251114C185 for a high-leverage bet on a sustained rally.