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HPQ Earnings Options Play Trade Follow Up

Feb 18, 2010 Earnings, Options, Stocks, Trading Idea

Hewlett Packard (HPQ) reported Q1 earnings of $1.10, beating estimates of $1.06. The company further upped the ante, by raising its full year outlook to between $121.5 billion and $122.5 billion, up from the company’s prior estimate of $118.0 billion to $119.0 billion. The stock however, was not much of a mover on the news, climbing just $0.69 to $50.81.

We recommended buying 3 HPQ March 50 calls and for every 3 calls, buy 1 March 50 puts yesterday, in anticipation of the news. Maintain the position. We will be looking to exit the trade next week.

Navivest

http://www.navivest.com

This entry was posted on Thursday, February 18th, 2010 at 9:19 pm and is filed under Earnings, Options, Stocks, Trading Idea. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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