Hewlett-Packard Buying Palm For $1.2 Billion
Apr 28, 2010 Company News, Mergers & Acquisition
Hewlett Packard (HPQ) is reportedly buying Palm (PALM) for $5.70 a share for a total of $1.2 billion. Palm closed the regular session at $4.64, indicating a 22% premium.
Tags: hewlett packard, hpq, merger, palm
Hewlett Packard Earnings Options Play
Feb 17, 2010 Earnings, Options, Stocks, Trading Idea
Hewlett Packard (HPQ) reports Q1 2010 after the bell today. Analysts are looking for the company to report earnings of $1.06 per share for the quarter. There is a good likelihood the company will beat earnings and we are buying calls to profit if the company does beat estimates and the stock moves higher. We are also purchasing some puts to hedge against a downside move in the stock, in the event the news is disappointing.
The Trade:
Buy the Hewlett Packard March 50 calls. The current ask is $1.62
For every three calls you purchase, buy 1 Hewlett Packard March 50 puts, which are currently asking $1.52.
We will post a follow up on this trade tomorrow Thursday February 18, 2010.
Navivest is a trading advisory services firm offering subscription-based trade recommendation services. For more information on our services, visit our website at http://www.navivest.com
Tags: Earnings, hewlett packard, Options
