Dell Earnings Could Swing the Stock 11% This Week, a $52 Straddle Shows
Options expiring Friday price an 11% swing, and analysts want AI margins, not just revenue. The post Dell Earnings Could Swing the Stock 11% This Week, a $52 Straddle Shows appeared first on . Dell Technologies reports fiscal second quarter results Tuesday after the close, and the options market is braced for a large reaction. Contracts expiring September 4 imply a swing of roughly 11% in either direction. The at-the-money straddle, a paired call and put at the same strike, cost about $52 against Dell’s $456.01 close on Monday. Buyers profit only if the stock travels further. Dell earnings options open interest by strike. .80 a share, and roughly $15.5 billion of AI server revenue. It expected its Infrastructure Solutions Group, the server and storage division, to grow about 75%. Zacks Investment Research puts the consensus at $4.72 a share across five forecasts. The bar is high because the previous quarter reset it. Revenue reached $43.8 billion in Dell’s record first quarter beat , up 88% year over year, and adjusted earnings of $4.86 landed far above Wall Street’s estimate. Management then raised the full-year revenue outlook to $167 billion at the midpoint and lifted its AI server target to $60 billion. Shares have climbed roughly 260% in 2026 on that artificial intelligence demand . “We booked $24.4 billion in AI orders and recognized $16.1 billion of AI server revenue. We’re increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing,” said Jeff Clarke, Dell vice chairman and chief operating officer, in the quarterly release . Data center names have already drawn profit-taking after big rallies .
📊 TECHNICAL INDICATORS 📈 EMA20/50/200: aligned long 💪 ADX14: 37.4 ⚡ RSI14: 61.8 🌊 MACD histogram: +1.04594 🌡️ ATR14: 0.43% of price 🔊 Volume: 0.44x average (below 20-candle mean)
⚠️ A 15m close through SL invalidates the setup. Never widen the stop. Educational analysis only—not financial advice. Futures and leverage can cause rapid losses.