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Friday, March 29, 2024

Dell Options Follow Up

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!"

 

 

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