4DELL trade ideas
$DELL Short Strangle OpportunityImplied volatility is very high in $DELL, and earnings are not until after August expiration. Right now, the 45/60 strangle for August has attractive pricing, high profit probability, and relatively small margin requirement. $Dell would need to rise by 16.4% or fall by 13.7% from current levels to be ITM.
Options traders bet on a reversal for DellEverything was going so well for Dell until its earnings report sent the stock plummeting, now down almost 25% from its high. Despite this someone is making a bet on a reversal by placing heavy volume call option trades with a $57.50 strike. From a technical perspective the only sign of reversal on the chart is the Momentum indicator which is a leading indicator, while the RSI, MACD and Histogram are all bearish. It is advisable to wait for the rsi to change course and some consistent green candles.
AVERAGE ANALYSTS PRICE TARGET $73
AVERAGE ANALYSTS RECOMMENDATION OVERWEIGHT
COMPANY PROFILE
Dell Technologies, Inc. is a holding company, which engages in the provision of information technology hardware, software, and service solutions through its subsidiaries. It operates through the following segments: Infrastructure Solutions Group (ISG), Client Solutions Group (CSG), and VMware. The ISG segment includes servers, networking, and storage, as well as services and third-party software and peripherals that are closely tied to the sale of ISG hardware. The CSG segment consists of sales to commercial and consumer customers of desktops, thin client products, and notebooks. The VMware segment provides compute, cloud management, networking and security, storage and availability, and other end-user computing offerings. The company was founded by Michael Saul Dell in 1984 and is headquartered in Round Rock, TX.
