DELL – Dell, Inc. – Optimistic options players are selling in- and out-of-the-money put options on the personal computer manufacturer today to position for continued bullish movement in the price of the underlying shares through July expiration. Dell’s shares gained 0.30% to stand at $13.37 as of 2:10 pm (ET), after earlier rallying 1.35% to an intraday high of $13.51. Bullish investors sold roughly 5,000 puts short at the July $13 strike to receive an average premium of $0.54 per contract. Selling spread to the July $14 strike where about 4,600 in-the-money put options were shed for an average premium of $1.03 each. Put sellers at both strike prices keep the premium received today as long as Dell’s share price exceeds $14.00 by July expiration. Investors short the puts at the July $13 strike are apparently happy to have shares of the underlying stock put to them at an effective price of $12.46 each, while investors short puts at the July $14 strike are willing to have shares put to them at $12.97 apiece, should the put contracts land in-the-money at expiration. Dell’s overall reading of options implied volatility is slightly up in afternoon trading by 4.1% to 39.69% as of 2:15 pm (ET).
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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