Trading Updates – Closing DELL
Channel Checkers & Phil’s Dell Option Trade – (posted in this section on May 27)
DELL – "My favorite play on Dell would be the simple July $10 calls for $1.55, which have just a .41-cent premium, fairly low if Dell does indeed take off. A more conservative approach would be to buy Nov $11 calls for $1.60 and sell the Nov $12 calls for $1.15, which is a net of .45 and will make .55 (122%) if Dell is good enough to finish at $12 in November." Phil
Dell released earnings after the market closed yesterday. According to AP, "shares of Dell edged up 12 cents to $11.60 in after-hours trading. Before the earnings report, they rose 36 cents, or 3.2 percent, to end the regular session at $11.48."
We’ll provide an update on closing the trade after the market opens today.
10:05 am: Sell July $10 calls at $1.76, Sell Nov. $11 calls at $1.77 and buy back the Nov. $12 at $1.29.
General rule to keep in mind: "Always sell into the initial excitement!"