$DELL bulls score at highs

Option traders have made more huge profits on bullish positions in Dell Technologies (DELL).

Market Rebellion’s Unusual Option Activity Service flagged bullish option activity in the name on two sessions last month:

–On Mar. 10, 5,000 April $95 calls were purchased for $1.21 to $1.32 above open interest of 434 contracts with shares at $87.10.
–On Mar. 17, 4,000 April $90 calls were bought for $2.59 to $2.65 above open interest of 2,423 contracts with shares at $89.03.

Those calls have traded for as much as $4.75 and $10.00 today, at least 3.5 times their respective purchase prices. The stock rose by as much as 14.42% in the same time frame, showing how options can far outperform their underlying shares.

These mark the second and third winning trades to be posted on Market Rebellion in the past week.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

DELL was last up 7.56% to $99.71 in morning trade. Dell announced after the close yesterday its planned 81% equity ownership spin-off of VMware (VMW).