Wednesday, February 08, 2006

HPQ Put Options

HPQ has had a nice run up, especially today when it moved up more than $1. Currently, the put options for March 2006 are trading at a discounted level. With the stock currently at $32, the put options for 27.5 and 30 are trading at less than $1 each. HPQ should pull back soon after this run up, and the put options can increase in price. Current stockholders in HPQ can also hedge against losses by buying put options at 32.5.

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