DIA Options Signal Bullish Momentum: Key Strikes and Block Trades Point to $500+ Target

• Dialight (DIA) trades at $490.25, down 0.34% intraday but above its 30D moving average ($484.29).
• Options market shows heavy call open interest at $500 strike and a 2.03 put/call ratio signaling bearish caution.
• A $1.5M block trade sold DIA20260116C500 calls, hinting at strategic hedging ahead of Friday’s expiry.

Here’s the takeaway: DIA shows upside potential with technicals aligned for a breakout above $491.93 resistance. The options market is pricing in a high-stakes battle between bulls targeting $500+ and bears bracing for a pullback to $483 support.

OTM Options and Block Trades: A Bullish Battle for $500

The options chain tells a story of conflicting expectations. This Friday’s top OTM calls cluster tightly around $490–$504, with DIA20260116C500 leading at 3,531 open interest. That’s not just noise—it’s a stampede of traders betting on a $500+ move. Meanwhile, puts dominate at deeper strikes ($330–$480), with DIA20260116P480 at 2,699 OI showing bearish positioning.

But here’s the twist: A massive block trade sold 1,500 DIA20260116C500 calls today for $25.5K. Think about this—someone with skin in the game is hedging against a short-term pop. That could mean two things: Either they expect DIA to rally past $500 and want to lock in profits, or they’re creating artificial resistance to pressure the stock lower. Either way, $500 is a psychological battleground.

News-Driven Context: Silence Speaks Volumes

No major news has moved DIA in the last week, which means the options action isn’t reacting to fundamentals. That’s both a risk and an opportunity. Without earnings or guidance to anchor sentiment, the stock is vulnerable to retail-driven volatility—but also free to run if technical levels break cleanly. Investor perception here hinges entirely on whether DIA can hold its 30D support at $483.25. If it does, the lack of news becomes a tailwind; if not, the puts at $480 could accelerate the slide.

Actionable Trading Setups: Calls, Puts, and Precision Entries

For options traders, the most compelling plays are:

• DIA20260116C500 (this Friday): Buy if DIA closes above $491.93. A $500+ close would trigger gamma squeezes given the heavy OI.
• DIA20260123C495 (next Friday): A cheaper alternative with lower risk if the rally is delayed.
• Put spread: Buy DIA20260116P480 and sell DIA20260116P473 to profit from a controlled pullback.

For stock traders, consider:

• Entry near $483.25 if price holds above the 30D MA. Target $500 as a first objective, with $505+ possible if the block trade is a hedge.
• Stop-loss below $488.55 (intraday low) to avoid getting caught in a breakdown.

Volatility on the Horizon: Positioning for DIA’s Next Move

The coming 48 hours will test DIA’s resolve. A close above $491.93 would validate the bullish case, while a drop below $483.25 could trigger a cascade of put activity. The block trade at $500 adds intrigue—will it act as a ceiling or a catalyst? My bet? If DIA’s long-term bullish trend holds (200D MA at $448), the $500 level isn’t a wall—it’s a floor. But don’t ignore the puts. This isn’t a one-way bet; volatility is the name of the game. Stay nimble, and let the options market’s whispers guide your entry.