Learn the trade here. Make it on tradeMONSTER

Options Trading News

September 28, 2012  Fri 9:45 AM CT

HPQ: SEE CHART GET CHAIN FIND STRATEGIES
As Hewlett-Packard hovers just above eight-year lows, a large trader is anticipating a big move in either direction.

HPQ is down 0.55 percent at $17.13 this morning. The struggling PC maker closed Tuesday at $16.71 and touched $16.23 on Wednesday, its lowest levels since August 2004. Shares have fallen from the 52-week high of $30 set in February.

A trader bought 10,000 May 14 puts for the ask price of $0.83, according to optionMONSTER's Depth Charge system. Open interest was a mere 2 contracts at the start of the session, so this is a new position.

There were also some large stock blocks traded in HPQ this morning, including a block of 220,000 shares bought for $17.27 just two minutes after the puts traded. The total delta of the put position is -220,000, so that stock transaction would make the overall position directionally neutral.

This means that the trader is setting up a long volatility play that could profit if HPQ moves sharply higher or lower and/or if the volatility is more than that implied by the options. (See our Education section)
Share this article with your friends


Related Stories

HPQ

Cramer: Hewlett-Packard feels love

August 22, 2014

Consider where the company was when CEO Meg Whitman inherited it, and, now, the personal computer business is roaring and taking share.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

It's all skewed up

Most new option traders know little about implied volatility, and learn the hard way. Today we want to help you...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER