Daily Options Outlook | Dell Technologies surges nearly 40% in pre-market trading; storage sector continues gains

Today's Options Opportunity Preview

$Dell Technologies (DELL.US)$ Up 38% in pre-market trading, the immediate catalyst stems from its latest quarterly results significantly surpassing expectations across the board, particularly driven by continued explosive demand for AI servers. The company’s Q1 revenue and profit both markedly exceeded market forecasts, with AI server revenue, AI-related orders, and backlog all rising in tandem. Dell also substantially raised its full-year guidance for both total revenue and AI server revenue, reinforcing market confidence in sustained expansion of AI infrastructure investment.

As a core supplier of AI servers, Dell has previously faced market concerns over its margins and supply constraints. However, this earnings report signals sufficiently strong demand and high order visibility, enough to justify further upward revisions to revenue expectations. For today’s trading session, DELL has already seen a substantial pre-market gain, so options traders should closely monitor post-open buying strength. If the stock maintains strong upward momentum on high volume after a sharp gap-up, it suggests the market is repricing valuation following the earnings beat. Conversely, if it spikes higher then pulls back, caution is warranted due to potential declines in implied volatility post-earnings combined with short-term profit-taking.

The storage sector continued to rally in pre-market trading today,$SanDisk (SNDK.US)$ The stock rose 2.13% in pre-market trading, as Barclays significantly raised its price target for SanDisk to $2,300, driven by a confluence of the storage pricing cycle, AI-driven data growth, and upward revisions in institutional valuations.

$NetApp (NTAP.US)$ The stock gained 16% in pre-market trading today, primarily due to Q4 earnings and next-quarter guidance both surpassing market expectations. Revenue and adjusted EPS outperformed consensus estimates, and management provided an optimistic outlook on future demand, refocusing investor attention on the growth elasticity of enterprise storage, all-flash arrays, and hybrid-cloud data infrastructure. NTAP's upside stems largely from the synergy between AI-driven data growth and improving storage cycles.

Review of yesterday's options market

Index Options

On May 28 Eastern Time, trading volume in the U.S. equity index options market increased, with a total of 5.5 million contracts traded. The put/call volume ratio declined to 1.08.

As the upcoming expiration date approaches,$S&P 500 Index (.SPX.US)$ Options volume distribution showed the following characteristics: peak put volume occurred at the 7,530 strike, while peak call volume was at the 7,615 strike.

Single Stock Options

$Ondas (ONDS.US)$The stock closed up 22.69%, with 923,600 options contracts traded and the put/call volume ratio rising to 0.23. Ondas shares surged 20% after reports that the Trump administration is in financing talks with several drone companies.

$Strategy (MSTR.US)$The stock closed down 1.66%, with 733,100 options contracts traded and the put/call volume ratio falling to 0.36. Strategy completed a $1.5 billion debt repurchase and announced plans to purchase $14 billion worth of Bitcoin.

Top list of options trading volume

Among the top 10 stocks by options trading volume,$Micron Technology (MU.US)$It recorded the highest put/call volume ratio at 0.95. Micron Technology’s stock surged 77% in May, marking its largest monthly gain since 1987, prompting analysts to raise their price target to $1,500.

The highest put/call open interest ratio is$Micron Technology (MU.US)$, reaching 1.28.

Implied volatility rankings (underlying market cap > $10 billion and options trading volume > 100,000)

$T1 Energy (TE.US)$Implied volatilityIt posted the highest gain at 169.01%, down 9.23% from the previous trading day. T1 Energy shares jumped 21.9% amid news that major shareholder Trina Solar sold $190 million worth of shares and faces scrutiny from short-seller firms.

$Red Cat Holdings (RCAT.US)$It saw the largest increase in implied volatility, reaching 123.76%, up 15.54% from the prior trading day. Red Cat Holdings’ shares surged 28% on news that the Trump administration plans to fund drone companies, while its maritime division, Blue Ops, began full-scale production of the Variant 7 unmanned surface vessel.

Risk Warning

An option is a contract that gives the holder the right, but not the obligation, to buy or sell an asset at a fixed price on a specific date or before that date. The price of an option is influenced by various factors, including the current price of the underlying asset, the strike price, time to expiration, and implied volatility.

Implied volatility reflects the market's expectation of the option's volatility over a certain period in the future. It is derived inversely from the BS pricing model of options and is generally considered an indicator of market sentiment. When investors anticipate greater volatility, they may be more willing to pay higher prices for options to hedge risks, resulting in higher implied volatility.

Traders and investors use implied volatility to assessOption priceto enhance attractiveness, identify potential mispricing, and manage risk exposure.

Disclaimer
This content does not constitute any offer, solicitation, recommendation, opinion, or guarantee of any securities, financial products, or tools. The risk of loss in trading options can be substantial. In some cases, losses may exceed the initial margin deposited. Even if you set contingent orders such as 'stop-loss' or 'limit' orders, these may not prevent losses. Market conditions may make such orders unexecutable. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be responsible for any shortfall in your account. Therefore, before trading, you should study and understand options and carefully consider whether such trading is suitable for you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and the rights and obligations upon exercise and expiration. Options trading carries extremely high risks and is not suitable for all investors. Investors should carefully readCharacteristics and Risks of Standardized Options。

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