- New Trades -
Hewlett-Packard - HPQ - close: 22.32
It was a big week for HPQ. The company booted its CEO and replaced him with Meg Whitman, who had been very successful with EBAY. I strongly suspect that the stock is at or near a bottom. The stock is trading near old support/resistance dating back to the 2004-2005 time frame. I am going to list a couple of different entry points and stops depending on your time horizon. Our target for both is $29.50.
Longer-term Time Frame
I am suggesting investors buy the 2013 calls now and we'll use a stop loss at $19.70.
BUY the 2013 Jan $25 call (HPQ1319A25) current ask $3.60
Shorter-term Time Frame
I am suggesting readers wait for a dip to $20.25 and then buy the 2012 January $22.50 calls with a stop loss at $19.45.
Buy-the-Dip trigger: $20.25
BUY the 2012 Jan $22.50 call (HPQ1221A22.5) current ask $2.56
Chart of HPQ:
Originally listed in New Plays: 09/24/11