Big Gainer Alert: Trading today’s 10.3% move in HEWLETT-PACKARD $HPQ

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Quantchabot has detected a promising Bull Call Spread trade opportunity for HEWLETT-PACKARD (HPQ) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HPQ was recently trading at $35.52 and has an implied volatility of 32.55% for this period. Based on an analysis of the options available for HPQ expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $35.27-$41.32 at expiration. In this scenario, the average linear return for the trade would be 44.16%.

Big 10.33% Change: After closing the last trading session at $32.19, HEWLETT-PACKARD opened today at $34.00 and has reached a high of $36.21.

Trade approach: A movement as big as 10.33% is a significantly bullish indicator, so this trade is designed to be profitable if HPQ maintains its current direction and does not revert back to pricing on the bearish side of $35.52 on 18-Feb-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if HEWLETT-PACKARD closes at or above $35.25 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 50.16% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.