A call spread is looking for limited upside in Dell in coming months.
optionMONSTER systems show that a trader bought 2,500 July 13 calls for $0.62 and sold 5,000 July 14 calls for $0.11 today. This is a new expiration, so there was no open interest at either strike at the beginning of the day.
This put vertical trade , also known in this case as a ratio spread because of the differing number of contracts in each strike, is designed to profit from DELL moving up to $14 but not much beyond. Above that level, the trader would be effectively short shares. (See our Education section)
DELL is down 0.97 percent to $13.27 this morning. Shares of the PC maker had been hovering around $14 since the start of March and are now down to their lowest levels since early February.
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