Evercore ISI has previously added the tech name to its “Tactical Outperform” list.
Dell Technologies Inc. (NYSE: DELL) attracts the analyst’s attention this morning. Evercore ISI previously added the tech name to its “Tactical Outperform” list, citing upbeat IT demand trends that the company believes will push Dell to post a first-quarter earnings beat when it steps into confessional after the market closes tomorrow, May 26. JP Morgan isn’t as optimistic, cutting DELL’s price target to $ 60 from $ 68 before the event.
Last saw a 3.4% rise to trade at $ 42.28, Stock of Dell Technologies has fought since Feb. 10, an all-time high of $ 61.54. Shares are now bouncing on a pullback in the $ 38 area, though the 30-day moving average remains above as resistance. Year-to-date, security has dropped 25.2%.
Dell Technologies stock finished four of eight post-earnings sessions higher over the past two years, including an 8.9% jump in May 2020. This time, options traders are pricing a 10.2% swing for to DELL after revenues, which is higher. than the 4.5% move it averaged following its last eight reports, regardless of direction.
The options put a bearish lean on DELL, according to a 10-day put/call volume equity ratio of 2.68 on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which higher than 98 % of readings from the past 12 months. This means there was a healthier-than-usual appetite in the late puts.
In echoing this, Schaeffer’s put/call open interest ratio (SOIR) of 0.97 is in the 94th percentile of its 12-month range, indicating that short-term options traders are now running with a heavy put. -bias.
Prior to the well -known event, it’s no surprise that Dell’s short -term options are getting a good penny. The stock’s Schaeffer Volatility Index (SVI) of 54% stood in the highest percentile of its annual range, at last night’s closing. In addition, security Schaeffer’s Volatility Scorecard (SVS) sits at a high of 86 out of 100, indicating that equity has exceeded options traders ’volatility expectations over the past year.