Stocks quoted in this article:
Hewlett-Packard (HWP - 109-15/16) is benefiting from a positive earning surprise from spin-off Agilent Technologies (A - 55-3/4), as HWP is currently ahead by more than two percent in early afternoon activity. The stock, though, remains beneath all of its significant short-term and intermediate-term moving averages. However, the shares have yet to breach their 10-month moving average, which has contained all monthly closes by this blue-chip name since October.
In HWP's options pit on Thursday, the in-the-money August 105 call saw its open interest rise from roughly 900 to 2,400 contracts. In addition, open interest on the out-of-the-money September 120 call increased from about 1,300 to 2,500 contracts.
On the options front today, 2,242 contracts have crossed the tape on the November 145 call. This deep-out-of-the-money option has open interest of just 462 contracts, indicating that most of this morning's volume should become new positions. Currently, this is the most-active call contract on the International Securities Exchange.<