Fast money has been the name of the game in Hewlett-Packard.
After a long slide, with big shorts such as Jim Chanos betting against the stock, HPQ has been lighting up our Heat Seeker scanners and ringing up some quick winners for traders looking for a rebound.
In late November, one day after the computer maker hit a 10-year low of $11.35, buyers snapped up the short-term Weekly 12 calls for $0.05. The stock bounced and they quadrupled their money overnight!
The activity returned today, when a customer swept book in the December 15 calls expiring next week. They paid $0.17, $0.18, and $0.19 for a total of 17,000, the entire open interest. The paper has kept flowing and volume is now approaching 31,000 contracts at that strike.
HPQ is up 0.69 percent to $14.63 in early afternoon trading. Calls in the stock outnumber puts by more than 2 to 1, according to Heat Seeker.
Disclosure: I am long stock and calls in HPQ.
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