Business Magazine

Hewlett-Packard Draws Call Spread As Shares March Higher

Posted on the 16 January 2014 by Phil's Stock World @philstockworld

The stock rose almost 90% during 2013, starting the year at $14.79 and closing it out at $27.98. Activity in August expiry options today suggests one trader is positioning for the price of the underlying to soar again during 2014. It looks like the strategist purchased a 2,000-lot Aug $34/$38 bull call spread at an average net premium of $0.74 per contract. The trade starts making money if shares in HP rally 16.5% over today’s high of $29.82 to exceed the breakeven price of $34.74, with maximum potential profits of $3.26 per contract available on the spread in the event that shares jump 27% to $38.00 by August expiration. Shares in Hewlett-Packard last traded above $38.00 in May of 2011.  


This article will become free after 48 hours (see below for free content). To read the rest of this article now, along with Phil's live intra-day comments, live trading ideas, Phil's market calls, additional member comments, and other members-only features - Subscribe to Phil's Stock World by clicking here.

 


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Hue Are You? with Kim Hoegger

    You? with Hoegger

    Welcome to HUE ARE YOU? A weekly blog series exploring different creatives' views on color and its use in interiors, art and design. We will dive deep into thei... Read more

    The 20 April 2018 by   Bridgetbeari
    HOME, INTERIOR DESIGN
  • 10 Strategies For Rebounding From Startup Failures

    Strategies Rebounding From Startup Failures

    If you can’t deal with failure, then the entrepreneur lifestyle is not for you. Don’t believe that urban myth that all you need is a good idea, a little fun... Read more

    The 20 April 2018 by   Martin Zwilling
    BUSINESS, CAREER
  • Lance Armstrong Settles $100 Million Lawsuit with Federal Government

    Lance Armstrong Settles $100 Million Lawsuit with Federal Government

    Yesterday, former pro cyclist and Tour de France winner Lance Armstrong put to rest the final lawsuit that has been dogging him since he admitted to doping... Read more

    The 20 April 2018 by   Kungfujedi
    OUTDOORS
  • Actor Matt McGorry Does Some Serious Ally Work

    Actor Matt McGorry Does Some Serious Ally Work

    If you’ve watched How To Get Away With Murder or Orange is the New Black, you’ve seen the work of actor Matt McGorry. If you follow him on Facebook you saw him... Read more

    The 20 April 2018 by   Danceswithfat
    DIET & WEIGHT, FITNESS, HEALTH
  • Trio of Climbers Make First Ascent of Jeannette Peak in Canada

    Trio Climbers Make First Ascent Jeannette Peak Canada

    The news of this story broke a week or so back while I was on the road, and it got lost in my email box until now. Still, it is a good story and I thought it wa... Read more

    The 20 April 2018 by   Kungfujedi
    OUTDOORS
  • Teach Anywhere

    Teach Anywhere

    Teach anywhere one of the best recruitment companies for teachers in the UAE. The Dubai City Company would like to review this company. With this in mind, this... Read more

    The 20 April 2018 by   Dubai City Company
    CAREER
  • Khost - Governance

    Khost Governance

    U.K. duo khost released their third full-length album titled Governance in June of 2017.What Damian Bennett and Andy Swan have created is a nightmarish... Read more

    The 20 April 2018 by   Ripplemusic
    ENTERTAINMENT, MUSIC

Magazines