Underperforming Tech Giant Gets a Post-Earnings Boost

Core Viewpoint - Dell Technologies Inc has forecasted its fourth-quarter revenue and profit above estimates, driven by growing demand for AI servers, leading to a 5.6% increase in stock price to $125.92 after reporting better-than-expected third-quarter results of $2.59 earnings per share on revenue of $27.01 billion [1] Group 1 - Several analysts have raised their price targets for Dell, with Mizuho increasing its target to $175 from $170, indicating potential for further upgrades as six brokerages currently have a "hold" recommendation on the stock [2] - Despite experiencing a choppy trading pattern with 10 daily drops in 11 sessions, Dell has maintained a 12% year-to-date gain and recently rebounded from a $120 support level [2] Group 2 - Options trading activity for Dell is notably high, with 36,000 calls and 25,000 puts exchanged, which is four times the average daily volume, indicating strong market interest [3] - The most popular option is the December 120 put, while there is selling activity for the weekly 11/28 135-strike call, suggesting strategic positioning by traders [3] - Dell's stock tends to outperform options traders' volatility estimates, as indicated by a Schaeffer's Volatility Scorecard (SVS) rating of 82 out of 100 [3]