Shares of Dell rose after the calls hit in yesterday's session, ending the day up 2.94 percent to $9.45. The stock is now attempting to bounce at its lowest level since March 2009.
On Nov. 2, traders bought the February 10s for $0.36. Those contracts have now inflated to $0.44, which shows the kind of leverage that can be generated with options.
More than 35,000 contracts traded in the name yesterday, triple its daily average. Calls outnumbered puts by more than 2 to 1, and the puts that traded were mostly sold. That reflects a willingness to own shares not far below their current levels, another bullish sign.
—By CNBC Contributor David Russell
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David Russell is a reporter and writer for OptionMonster. Russell has no positions in DELL.