NEW BULLISH Plays
Hewlett-Packard Company - HPQ - close: 36.67 change: +0.41
Stop Loss: 35.90
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Entry on September -- at $---.--
Listed on September 17, 2014
Time Frame: 8 to 12 weeks
Average Daily Volume = 11.1 million
New Positions: Yes, see below
Why We Like It:
Old technology giants are have recaptured the market's attention. The S&P 500 is only up about 7% this year. Yet companies like Intel (INTC) are up +34%, Microsoft (MSFT) is up +25%, and HPQ is up +29.5%. HPQ covers a lot of ground in the technology sector.
According to the company website, "HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. With the broadest technology portfolio spanning printing, personal systems, software, services and IT infrastructure, HP delivers solutions for customersâ€™ most complex challenges in every region of the world."
What that marketing talk is trying to say is HPQ has got you covered. They make computers, computer peripherals, printers, servers, software, data storage. Plus, they offer cloud services, big data solutions, and cyber security. They are also expected to introduce a 3-D printer in the future.
Technically shares of HPQ have been slowly marching higher with investors consistently buying the dips. You can see the technical support at the stock's rising 50-dma. Now after a two-week pullback investors have started buying the pullback in HPQ again.
We want to hop on board if HPQ confirms this reversal higher. Tonight we're suggesting a trigger to open bullish positions at $37.15. We're not setting an exit target tonight but I will note the point & figure chart is forecasting at $47 target.
Trigger @ $37.15
- Suggested Positions -
Buy HPQ stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the 2015 Jan $40 call (HPQ150117C40) current ask $0.73
Option Format: symbol-year-month-day-call-strike