Upside Purchased in Dell

This morning I am seeing a few large blocks of calls being bought on the offer in Dell (NASDAQ: DELL). The majority of the action is coming on the May $12 line, where over 10,000 contracts have traded. There has also been some action on the front month $13 and $14 lines as well, the vast majority purchases.

This action comes on the heels of an upgrade to “Buy” from “Neutral” over at UBS. UBS contends Dell does not need to expand market share to meet or exceed the firm's earnings projections and given the 10% drop in the stock in recent weeks, valuations are ripe for an upgrade. Dell is currently up 2.51%, to $13.91.