Call Traders Blast Surging Dell Stock After Earnings

The stock is on track for its best single-day session in over 2 years

Deputy Editor
May 27, 2022 at 11:03 AM
facebook twitter linkedin

Dell Technologies Inc (NYSE:DELL) is enjoying a post-earnings surge this morning, up 12.5% to trade at $49.42 at last glance -- on track for its best single-session gain since March 2020. The computer software company announced a strong full-year forecast and upbeat first-quarter results, giving its sector peers a boost as well. 

Analysts are chiming in with mixed sentiment, albeit with fairly mild price-target moves. BofA Global Research raised its price target by $2 to $67, while Raymond James lifted its by $1 to $58. On the negative side, Morgan Stanley slashed its price objective by $4 to $56, while Deutsche Bank lowered its to $60 from $65. 

Earlier as high as $52.59, DELL is extending its bounce off its May 20 one-year low of $38.33. Even though DELL has  broken above its 50-day moving average for the first time since Feb. 18, the stock is still down 11.6% year-to-date. 

Puts have been much more popular than usual in the options pits. This is per DELL's 10-day put/call volume ratio of 2.08 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 95% of readings from the past year. 

A clear shift is happening today, however, with 15,000 calls exchanged so far in comparison to 5,432 puts. Overall, options volume is running at 16 times the intraday average, and pacing for the top percentile of its annual range. The June 50 call is the most popular contract, with new positions being bought to open there. 


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Best stocks for October and worst stocks for October


Special Offers from Schaeffer's Trading Partners