$DELL and $COST Earnings Today ATC - IV Rich for One, Cheap For the Other!
u/GammaReaper_ ·
Reddit — r/options
· May 28, 2026 at 19:50
· ⬆ 36 pts
· 💬 32 comments
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Earnings season is winding down, but I have identified two high EV trades for today. Both Dell ($DELL) and Costco ($COST) are reporting after the bell.
Looking at my standard metrics of historical moves, standard deviation of moves, vol crush, and several other vol surface metrics, I've come to two different conclusions:
1. $COST vol is overpriced. Trade = 1DTE defined-risk short IC.
2. $DELLl is looking cheap. Trade = 1DTE long defined-risk IC.
With options expiry tomorrow, I'm play the vol crush vs expected/actual moves. Trades are going on at today's close. Will be out of the positions by 9:45-10 am tomorrow.
1% of portfolio capital allocated to each trade. 15 min to showtime - no tears!