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

• DIA trades at $489.27, down 0.54% from its 52-week high of $491.94
• Options put/call open interest ratio is 2.03, showing heavy bearish positioning
• Block trade of 1,500 shares sold at DIA20260116C500 ($500 call) hints at institutional conviction

Here’s what’s happening: The options market is whispering a story of tension between cautious bears and aggressive bulls. While puts dominate open interest, call volume at key strikes suggests a potential breakout is brewing. Let’s break it down.

Bullish Pressure Builds at $500 Strike

Looking at this Friday’s options chain, the DIA20260116C500 call has 3,531 open contracts—the fourth-highest OI among OTM calls. That’s not random. When you pair that with the block trade of 1,500 shares sold at the same strike (worth $25,500), it feels like smart money is hedging a short-term rally. Think of it like a weightlifter priming the barbell: the $500 level is where the market expects a lift.

But don’t ignore the puts. The DIA20260116P480 ($480 put) has 2,699 open contracts, and the $330 put has 4,501. That’s a bearish safety net for those bracing for a drop below the 30-day support of $483.26. The message? Traders are buying insurance while positioning for a potential rebound.

No News, But Technicals Tell a Story

The lack of recent headlines means fundamentals aren’t driving this move. Instead, technicals are in control. DIA’s price is clinging to the upper Bollinger Band ($497.06), and the 30-day moving average ($484.29) is holding firm as support. If the stock breaks above $491.93 (today’s high), it could surge toward $500—where those call options are clustered. But a drop below $488.55 (intraday low) would test the 30-day support zone.

Actionable Trades for Today

For options: Buy the DIA20260116C500 call if DIA closes above $491.93 today. The block trade suggests liquidity here, and a $489.27 entry gives you 2.2% upside to $500. For next Friday, the DIA20260123P482.5 put (378 OI) is cheap insurance if you’re long the stock.

For stock: Go bullish with a limit order at $488.55 (intraday low). If it holds, target $495 (RSI suggests momentum) and then $500. If it breaks below $483.26, exit or hedge with the $480 put.

Volatility on the Horizon

This isn’t a one-way bet. The put/call ratio and block trades show a tug-of-war between bears and bulls. But the technical setup—especially the 30-day bullish trend—favors a short-term rally. Keep an eye on next Friday’s options (expiring 2026-01-23) for follow-through. If DIA closes above $500 this week, the next target becomes $510. If it falters, the 200-day support at $462.46 will be a brutal test.

Bottom line: DIA is dancing on a tightrope between $483 and $500. The options market is betting on a breakout—your job is to decide whether to ride the bull or play defense.