Click to View this Strategy in DELL Option Chain Profit Calculator
Large Volume Call Spread Trade Points to Bullish Near-Term Expectations
A significant options trade in Dell Technologies (DELL) just lit up the tape—a 1,202 contract call spread targeting the 120 and 125 strikes for the June 27, 2025 expiration. This trade, executed at a VWAP price of $1.25, now stands at $1.46, offering early buyers a gain of $0.20 or 16.3%. The move was timed with DELL’s stock advancing $0.66, from $117.99 to $118.65 at the latest mark.
Trade Details: DELL 120-125 Call Spread
| Option Spread | 120/125 Call |
|---|---|
| Expiration | 27-Jun-25 |
| Number of Contracts | 1,202 |
| Days to Expiration | 7 |
| VWAP Trade Price | $1.25 |
| VWAP Bid Price | $1.16 |
| VWAP Ask Price | $1.31 |
| Stock Reference Price | $117.99 |
Full multi-leg trade analyzer here.
Call Spread Trade Puts Over $75K at Risk for Potential $225K Reward
The buyers of this call spread paid more than $75,000 in total premium to control the 1,202-contract spread. The payoff is clear: if DELL shares climb above $125 by June 27 expiration, this position could net roughly $225,000. With just a week to go and the stock less than $7 away from that level, the trade implies a targeted bullish view on a near-term rally.
Stock and Trade Metrics Snapshot
| Current Stock Price | $118.65 |
|---|---|
| Stock Price Change (Today) | +2.09 (+1.79%) |
| Change from 50-Day Avg. | +16.9% |
| Distance from $125 Target | +6.35 (5.35%) |
Technical Indicators Are Bullish: Price Climbs 16.9% Above 50-Day Moving Average
DELL’s technical posture is looking strong in the short run. The current price sits 5.2% above the 20-day moving average and a remarkable 16.9% above the 50-day moving average—both levels that suggest upward momentum. Additionally, today’s 1.4% open jump and continued gains indicate buying pressure, despite DELL underperforming the broader market over the past year.
The stock’s bullish crossover on its moving averages supports the case for continued short-term strength. Notably, while DELL’s year-over-year return of -19.2% lags the S&P 500’s +9.4%, the tide appears to have turned recently: in the last 3 months, DELL surged +23.6% compared to SPY’s +6.0%.
DELL Stock vs SPY: Recent Performance
| Duration | DELL Return | SPY Return |
|---|---|---|
| Today | +1.8% | -0.4% |
| 2 Week | +5.3% | -0.5% |
| 1 Month | +3.9% | -0.2% |
| 3 Month | +23.6% | +6.0% |
| 6 Month | +6.2% | +1.8% |
| 1 Year | -19.2% | +9.4% |
| YTD | +3.8% | +1.5% |
| 3 Year | +159.4% | +67.2% |
| 5 Year | +415.9% | +101.3% |
Skew Indicator: Option Market Signals Slightly Bullish Sentiment
What do the option markets say? The proprietary 30-day implied volatility skew sits at a 66% rank—solidly in the "slightly bullish" zone. This is a forward-looking measure, suggesting that market participants expect more upside than downside risk over the next month, and lending credence to the timing of the call spread trade.
What’s the Takeaway? Positioning for a Short-Term Move Above $125
With technical momentum building and the option skew indicator showing a bullish lean, it’s clear why someone might place a sizable bet on DELL eclipsing $125 by next week’s option expiry. While the path isn’t risk-free—recent gains mean DELL still has to overcome resistance near its 52-week high—the convergence of price action and option sentiment hints at heightened short-term expectations.
For readers interested in monitoring more call spreads or complex options trades, check the Multi-Leg Trade Screener for up-to-date strategies across the market.
Key Metrics At a Glance
- Call Spread Cost: $1.25 (current value $1.46)
- Contracts Traded: 1,202
- Potential Payout: Up to $225,000
- Break-Even: DELL needs to finish above $121.25 at expiration
- Implied Skew: 66% rank (slightly bullish)
- Technical Bias: Bullish Crossover; short-term outperformance
With one week to expiration and bullish signals aligning, will DELL power through $125? It’s a setup worth watching as the option market reveals its short-term expectations.
Contact Information:
If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.
About the Publisher - Marketchameleon.com:
Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.
NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.