M&A News Brings Bulls to Hewlett-Packard Company (HPQ)

Hewlett-Packard Company (HPQ) call options are in focus once again

Digital Content Group
Mar 2, 2015 at 10:43 AM
facebook twitter linkedin


Hewlett-Packard Company (NYSE:HPQ) has seen an uptick in call volume this morning, as speculators react to the company's agreement to purchase Aruba Networks, Inc. (NASDAQ:ARUN). The contracts are crossing at a 21% mark-up to the normal mid-morning pace, and have outnumbered puts by a nearly four-to-one margin.

Buy-to-open activity has been detected at the weekly 3/6 35.50-strike call. These speculators are hoping for HPQ to move above $35.50 by the close this Friday, when the contracts expire. At last check, the shares were 0.2% higher at $34.93.

The equity's call options were popular even before today. HPQ's Schaeffer's put/call open interest ratio (SOIR) comes in at 0.49, an annual low. This means option traders have preferred calls over puts more than at any other point in the past year, among options expiring in three months or less.

Reinforcing this sentiment is the stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 4.07. This reading is only 4 percentage points from an annual high.

So far in 2015, though, Hewlett-Packard Company (NYSE:HPQ) has been a letdown for these seemingly bullish option traders. Since the start of the year, the shares have lost nearly 13%.

 

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 Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners