DY — Sep 420/500 call spread
Dycom prints fiscal Q2 on Aug 26 after growing revenue 56% and adjusted EBITDA 75% in the prior quarter on record backlog, with management guiding $1.94B to $2.01B for the period. The stock trades at 56% of its 52-week range while the supply-chain basket sits at all-time highs, and that gap is what the print addresses. The 420/500 spread costs $22.33 against $80 of width and breaks even at $442, inside the 16.2% move the chain prices.
- Ticker: DY
- Direction: Bullish
- Risk profile: directional
- Confidence: medium
- Catalyst: Fiscal Q2 2027 earnings (BMO) (2026-08-26)
- Cohort: 2026-08-16
- Expires: 2026-08-23
- Max loss: $22.33
- Max gain: $57.67
Structure
- long call 420 2026-09-18
- short call 500 2026-09-18
Signals
- Prior quarter: Revenue +56% YoY, adj EBITDA +75%, record backlog (web_search)
- Q2 revenue guide: $1.94B-$2.01B (web_search)
- 52w range position: 55.8% vs basket at record highs (DB)
- Consensus PT: $637 vs $419 spot (web_search)
What invalidates this thesis
Fiber-to-data-center work is lumpy and a single carrier deferral resets the backlog narrative. The 500 strike carries 61 contracts of open interest, so this is a hold-to-expiry structure, not one to trade around.