Microsoft (NASDAQ:MSFT) announced a new tablet yesterday, a mediocre product as to be expected since the company’s non-gaming products are universally mediocre. But it will help the corporate marketplace where there are true blue Windows companies that refuse to let Android or iPad inside their domain.

The market agreed and bid up the stock. This is a headline driven move, and I believe MSFT will retrace back to below $30. That retracement began yesterday — MSFT could not sustain momentum and sold off after a big rush into the stock in the morning. Volume was light above the $30 price point — some short covering and people thinking the new tablet is material to their business. It is not.

The MSFT $31 June, Week 4 put is selling for just $0.40. You could lose all your money if I am wrong — or you could grab a very quick double if I am right.

One other point to make — the market may have temporarily pushed through the 1,245 level on the S&P 500, but it did so on light volume and there is a good chance it will go back to that level, perhaps lower, and pull Mister Softee with it.

Don’t like going short?

Another way to play tablets, smartphones and laptops that use flash memory rather than disk drives is to sell puts against a NAND flash maker — and the only one worth doing so is SanDisk (NASDAQ:SNDK). SanDisk is very volatile — check the charts and see for yourself — so selling a weekly put may be the simplest, least nerve-wracking way to get into the stock.

Take a look at this week’s SNDK $36 put where you can get around $18 per contract, which is a 0.5% return in a few days and 25% a year. And if you end up owning the stock at $36, that is a very good price.

For purposes of disclosure Michael Shulman owns shares of the SNDK.

Michael Shulman is editor of Options Income Blue Print. Learn more about trading weekly options in this free short video.