Learn the trade here. Make it on tradeMONSTER

Options Trading News

February 26, 2013  Tue 2:45 AM CT

HPQ: SEE CHART GET CHAIN FIND STRATEGIES
Hewlett-Packard held most of last week's big gains even through the market downturn yesterday, but a large trade is expecting the stock to stay range-bound in coming months.

optionMONSTER systems show that 8,000 each of the April 17 puts and 21 calls traded for $0.28 and $0.30 respectively in what appears to be a short-strangle strategy. (See our Education section)

The position would take in a credit of $0.58, which would be the maximum profit if HPQ remains between $17 and $21 through expiration in mid-April. The risk is that the trader may have to buy shares at $17 and selling them at $21.

HPQ was down 0.68 percent yesterday to close at $19.07. The computer maker traded near $20 on Friday after gapping higher on its earnings report, posting its highest close since gapping down in August. Shares were trading below $12 in late November.

More than 96,000 HPQ options changed hands yesterday, more than triple its daily average in the last month.
Share this article with your friends


TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinar Series

The 100K Challenge

Education & Strategy

Anatomy of a butterfly

One of the many esoterically named option strategies is known as a "butterfly." But don't be fooled: Like other advanced...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER