Dell Technologies (DELL) stock spiked almost $100 this week after its Sept. 1 Q2 earnings release, following strong earnings and free cash flow (FCF) performance. But it's near my prior FCF-based price target ($525.71) from a month ago. Moreover, ***** ysts' PTs are only slightly higher (+7.6%).
As a result, instead of buying DELL stock here, shorting out-of-the-money options may be a better play. That way, an investor can collect a premium while waiting to buy in (i.e., a short-put play) lower or sell at a higher price (a covered call play). This article will show how these work.
Meta Is Underperforming Every Trillion-Dollar Stock but Tesla. This Trade Pays You While Wall Street Waits It Out.
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DELL closed at $524.14 on Friday, Sept. 4, up +23.3% from its pre-earnings close on Sept. 1 of $425.00. In fact, it's been quite volatile, as seen in the Barchart chart below. In fact, its implied volatility (IV) is relatively high at 62.50%, according to Barchart.
#earnings
As a result, instead of buying DELL stock here, shorting out-of-the-money options may be a better play. That way, an investor can collect a premium while waiting to buy in (i.e., a short-put play) lower or sell at a higher price (a covered call play). This article will show how these work.
Meta Is Underperforming Every Trillion-Dollar Stock but Tesla. This Trade Pays You While Wall Street Waits It Out.
Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, ***** ysis, and headlines.
DELL closed at $524.14 on Friday, Sept. 4, up +23.3% from its pre-earnings close on Sept. 1 of $425.00. In fact, it's been quite volatile, as seen in the Barchart chart below. In fact, its implied volatility (IV) is relatively high at 62.50%, according to Barchart.
#earnings
1 day ago
