Huge Trade Bets on More Gains in HP

By David Russell, reporter at OptionMonster

NEW YORK -- Some old tech names have recently come back from the dead, and now the bulls are betting that Hewlett-Packard ( HPQ) is ready to make another move.

OptionMONSTER's tracking systems detected heavy buying in the March 18 calls, which traded in large institutional size for 36 cents to 40 cents. Volume surged past 28,000 in the session, including one giant block of 17,000 contracts.

These calls lock in the price where investors can buy shares in the iconic Silicon Valley company. They stand to generate some nice leverage if it keeps rallying but could also dwindle in value if the shares don't move. The stock already handed traders giant profits in November as it lifted from a 10-year low.

Hewlett-Packard share rose 0.12% Thursday to close at $17.03. Other technology veterans including Nokia, Sony, Dell, and BlackBerry have also made big moves in recent months after major selloffs.

Total option volume in the name was twice its daily average, with calls outnumbering puts by almost 5 to 1.

Russell has no positions in HPQ.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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