Trader Collars Up Gains in Dell

Shares of Dell Inc. DELL are lower on the session by 1.81%, currently trading at $12.75. The stock has been moving largely higher over the past few weeks, off of a low near $11.40. It appears that an existing long stockholder has executed a protective collar today. A short while ago the November $14 call was sold 20,000 times, for $0.30, and the November $12 put was purchased 40,000 times, for $0.34. Volume exceeded open interest on both strikes. Given the sizing of the calls versus puts, it appears that the stockholder has 4 million shares and is only capping his or her gain on half the position, whereas they are limited losses on the full position. Dell Inc. is a holding company, which conducts its business globally, through its subsidiaries. It offers a range of product categories, including mobility products, desktop personal computers, software and peripherals, servers and networking, and storage. The services include a range of configurable information technology and business related services, including infrastructure technology, consulting and applications, and business process services. For more great research like this, as well as how to play it through options…please visit Benzinga's Options & Volatility Edge and Benzinga's Cash Generator.