HP Bulls Bet Strategy Shift Will Spur 53% Stock Rebound: Options
This article is for subscribers only.
Hewlett-Packard Co. options traders are the most bullish in two years amid optimism the company’s shift away from personal computers will prove successful, even after disappointing earnings erased $20 billion from the stock.
The ratio of calls to buy shares versus puts to sell has climbed 7.3 percent in the past month to 1.6, the highest level since August 2009, according to data compiled by Bloomberg. January $35 calls, priced 53 percent above the shares, have the largest open interest among Hewlett-Packard options, accounting for 6.5 percent of 1.28 million outstanding contracts. The stock plunged 27 percent since Aug. 17 to $22.93 yesterday.