LD Lossdog Research
symbol

DELL

6 matching records.

Trade idea

Dell Strangle

The speaker suggests selling a strangle in Dell due to the high implied volatility and the expected move of $91. The trade involves selling options at $14, with the potential for a 96% pop. The speaker adjusts the strike prices based on the stock's movement, suggesting a strangle with options at $300 and $700. The trade is considered a contrarian play, leveraging the high volatility and the potential for a significant price movement.

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StrategyStrangle
AssetEquity
ExpirationAugust
Time horizon30 days
Entry / triggerStock price at $14
Target / exit400 points wide
Invalidation / stopIf the stock moves significantly against the trade
SpeakerSpeaker
Structure / legs
  • Sell August 300 put
  • Sell August 700 call
Risks
  • Significant price movement against the trade
  • Market conditions changing rapidly
ShortequityshortstrangleDELL30 days
high confidenceVerify in video at 42:15 ↗
Trade idea

Dell Double Ratio

The speaker suggests a double ratio strategy involving buying the 90 put and selling the 80 put for a $2 credit. This trade is considered more effective when the stock price is down two and a half. The strategy is based on the idea that the stock price is expected to remain within a certain range, allowing the trader to profit from the credit received while limiting risk.

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StrategyDouble Ratio
AssetEquity
Time horizonShort-term
Entry / triggerStock price down two and a half
Target / exitCredit of $2
Invalidation / stopStock price moves significantly against the trade
SpeakerUnknown
Structure / legs
  • Buy 90 put
  • Sell 80 put
Risks
  • Market volatility could cause the stock price to move beyond the expected range
  • The trade may not generate the expected credit if the stock price moves against the trade
ShortequityshortDELLshort-term
high confidenceVerify in video at 41:55 ↗
Trade idea

Dell selling calls and puts

The speaker believes that the IBR being above 100 indicates a potential trade opportunity for Dell. By selling 600 calls and 300 puts for August, the speaker anticipates a price range that could result in a profit of five to six bucks. The strategy is based on the assumption that the IBR will move above 100 and that the stock will trade within the predicted range.

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Strategyselling calls and puts
Assetequity
ExpirationAugust
Time horizonshort-term
Entry / triggerIBR above 100
Target / exitfive to six bucks
Invalidation / stopIf the IBR remains below 100 or if the stock price moves outside the predicted range
SpeakerSpeaker
Structure / legs
  • 600 calls
  • 300 puts
Risks
  • Market volatility affecting the stock price
  • Incorrect interpretation of the IBR
  • Potential for the stock to move outside the predicted range
shortequityshortDELLshort-term
high confidenceVerify in video at 33:03 ↗
Trade idea

Dell short call spread

The speaker suggests adjusting the Dell trade by selling higher strike calls (650 or 700) and buying lower strike puts (300). This strategy is based on the call skew in the market, which is described as 'ridiculous.' The idea is to capitalize on the skew by selling calls and buying puts, which can provide a profit if the stock remains within a certain range. The speaker also mentions rolling the position to the next month if the assumption remains unchanged.

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Strategyshort call spread
Assetstock
ExpirationJuly
Time horizonShort-term, with potential for rolling the position to the next month
Entry / triggerMarket conditions suggest a potential for a short call spread strategy
Target / exitProfit from the call skew and the put credit
Invalidation / stopIf the stock moves significantly against the short call positions
SpeakerTom
Structure / legs
  • sell 650 calls
  • sell 700 calls
  • buy 300 puts
Risks
  • Market movement against the short call positions
  • Potential for increased volatility
  • Need for careful monitoring and adjustment
short call spreadEquityshort call spreadDELL
medium confidenceVerify in video at 57:02 ↗
Q&A

Do I need to worry about the dividend event in 3 days for my short call position in Dell?

No, you do not need to worry about the dividend event in 3 days for your short call position in Dell. The stock needs to be over 500 for you to have dividend risk. Since the stock is currently at 436, you are not at risk of dividend exposure.

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Actionable takeawayDividend risk for short call positions is only relevant if the stock price exceeds the strike price. In this case, the stock is below the strike price, so dividend risk is not a concern.
DELLOptions
high confidenceVerify in video at 29:20 ↗
Q&A

What is the Dell trade strategy?

The Dell trade strategy involves selling higher strike calls (650 or 700) and buying lower strike puts (300). The speaker suggests adjusting the trade based on the call skew in the market, which is described as 'ridiculous.' The idea is to capitalize on the skew by selling calls and buying puts, which can provide a profit if the stock remains within a certain range.

View full notes
Actionable takeawayThe strategy involves using a short call spread with higher strike calls and lower strike puts to capitalize on market skew.
DELLOptionsTrading Strategy
medium confidenceVerify in video at 57:02 ↗