Hewlett Packard Stock Looks Poised for a Comeback

An unwinding of pessimism in the options pits could provide additional tailwinds

Digital Content Manager
May 16, 2022 at 2:25 PM
facebook twitter linkedin


It's been a volatile year for Hewlett Packard Enterprise Co (NYSE:HPE) stock, which surged to a Feb. 10, roughly four-year high of $17.76, before pulling back to the $15 level earlier this month. HPE has added 8.7% over the past six months, though, and its latest dip has placed it near a historically bullish trendline that has preceded rallies in the past. In other words, now looks like an opportune time to bet on a move higher for the stock. 

According to Schaeffer's Senior Quantitative Analyst Rocky White's latest study, HPE is within one standard deviation of its 260-day moving average. The tech concern has seen five similar signals over the past three years, and was higher one month later 80% of the time, averaging a 3.2% return during that period. A comparable move would place the stock just shy of $17.

HPE 260 Day

An unwinding of pessimism over in the options pits could push HPE higher, too. This is per the stock's 10-day put/call volume ratio of 1.38 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than all but 1% of readings from the past 12 months. This suggests there has been a healthier-than-usual appetite for puts lately.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners