Bears Pouncing on Hewlett-Packard Options
Hewlett-Packard Company (NYSE: HPQ) saw its shares set a new 52 week low of $17.56 Thursday morning and option activity suggests investors are looking for this down trend to continue.
Bearish put volume is already 4 times the company's daily average with the September 17 strike options receiving the most attention. More than 27,000 contracts have changed hands with nearly all the trades on the offers and far surpassing current open interest. The August 17 puts have also been active with 10,000 contracts trading with 90 percent of the trading either mid market or on the offers.
The company is slated to release its earnings on August 22nd. Looking back at the last four quarters the stock has disappointed after each announcement. Today's option activity suggests investors are looking for another post earnings release drop in share price, pushing the stock to levels not seen since August 2004 for these contracts to be profitable.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.