One investor apparently thinks that Hewlett-Packard might have a
happy New Year.
optionMONSTER's Heat Seeker monitoring systems detected the
purchase of about 20,000 January 24 calls for $1.77 to $1.82 and
the sale of a matching number of January 31 calls for $0.33 to
$0.35. Volume was above open interest in both strikes.
is designed to leverage a rebound in the share price. It cost about
$1.46 and will earn approximately 379 percent if the tech giant
closes at or above $31 on expiration. (See our
HPQ is down more than 4 percent to $21.87 this afternoon, so that
option trader is hoping for a rally of more than 40 percent. The
stock is sitting around its lowest price in more than six years,
dragged downward by the broader market and a series of bad
strategic moves by its directors.
Yesterday the computing giant hired Meg Whitman as its new CEO, but
investors apparently want more evidence that a turnaround is taking
place before driving shares higher. The other options volume in the
name is mostly non-directional with investors selling calls and
The company's next earnings release is scheduled for Nov. 21.
Overall option volume is 4 times greater than average so far
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.