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Hewlett-Packard Company (HPQ) provides various products, technologies, software, solutions, and services worldwide. The company's Enterprise Storage and Servers segment provides storage and server products in industry standard servers, business critical systems, and StorageWorks offerings. Its HP Services segment offers a portfolio of multi vendor IT services, such as technology, consulting and integration, and outsourcing services. Earnings are expected out on November 20th.

We are selling the $42.50 strike mainly because there is no need to sell too close to the current price. As the chart below shows, there is decent support at about $44.50. A break of $44.50 would signal a technical stop. Otherwise, cover the options once the price breaks above $2.00 for a 1.5:1 ratio stop.

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