HP Stock Sinks After Berkshire Hathaway Sells Stake

Options traders are blasting the security in response

Fernanda Horner

Digital Content Manager

Sep 14, 2023 at 10:59 AM

Warren Buffett's Berkshire Hathaway (BRK) sold 5.5 million shares of tech name HP Inc (NYSE:HPQ) for about $158 million. This brings the conglomerate's stake in HP down to roughly $3.27 billion, per a new filing with the U.S. Securities and Exchange Commission (SEC).

HPQ was last seen down 3.3% at $27.40, and earlier slipped to its lowest trading level since January. The stock's 20-day moving average has been guiding it lower since August, capping a rally later that month. Quarter-to-date, HP stock is now down more than 10%.

Options volume is running at double the intraday average today, with 6,362 calls and 4,175 puts traded. The most active contract is the October 30 call, with positions being opened at the weekly 9/15 27-strike call.

These options are affordably priced at the moment, too. This is per HPQ's Schaeffer's Volatility Index (SVI) of 33% that sits higher than just 12% of annual readings, meaning these traders are currently pricing low volatility expectations.

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