Last-minute buying in Hewlett-Packard By Pete Najarian, co-founder of OptionMonster
NEW YORK -- Hewlett-Packard (HPQ) is continuing its surprising rebound, and last-minute buyers stepped in Tuesday in search of even more gains.
About 5,000 April 23 calls were purchased, most of them in the final 45 minutes of the session for 21 cents, according to OptionMonster's real-time tracking systems. Open interest in the strike was 2,202 contracts before the session began, indicating that Tuesday's action was fresh buying.
The computing giant's stock rose 1.76% Tuesday to close at $21.40. It hit a decade low of $11.43 last November but gapped higher on quarterly results last month and has been rising ever since.The calls bought Tuesday, which lock in the price where traders can buy the stock, are looking for the stock to climb above $23 by mid-April. They can provide significant leverage in the event of a rally but can expire worthless if shares remain below that strike price. Najarian has no positions in HPQ.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV