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Options Traders Cautious Ahead of Dell Earnings, and Beyond


While options traders appear cautious ahead of Dell's earnings after the bell today, they appear downright scared of what might happen in March.

Despite the fact that Dell’s earnings have beat expectations in the last three quarters, options traders aren't expecting a large move this afternoon.

“The options market looks to be pricing in a mid-single digit move in the stock on earnings,” said Chris Jacobson, Options Strategist at Susquehanna Financial Group.

But beyond earnings, some traders see more pain to come.

Michael Schwartz, Chief Options Strategist at Oppenheimer & Co., sees more put volume in March, with some options traders buying puts that would only be profitable if Dell stock has a big fall.

Most of today's actionis in the March 12-strike calls, with over 29,000 contracts trading hands.

“Investors are expecting something bad will happen after the earnings come out," added Schwartz.

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