HPQ (Covered Call)I bought 100 shares of HPQ stock after it broke above resistance trendline and I sold the 16.50 call option to mitigate downside risk . By buying 100 shares at 16.45 and selling 1 june 19th call @ 16.50 strike, I collected a 1.20 premium which protects the trade by 7% (break even price at $15.25). I will reach my max profit if the stock trades sideways or remains above 16.50 where I will profit 125$ or 7.5%.
Hit the like button if you want an update in June on how this trade performed.
Trade ideas
$HP Back to the $14sVolume is quickly drying up on the $HP 4hr chart.
Gap to be filled back at the $15.40 down to 14.90 range.
SMI has flipped.
30% Run up in 6 days.
These 4 indicators say that we will most likely see a pull back this week and possibly next.
I personally would like to see it drop back into the gap or a bounce off the .618 fib.
I would hop back on the bullish train it it breaks above $17.53 on the daily chart.
I’ve got a FEVER, the only script is more $HPQIve got a hunch that there was a substantial jump in home printer purchases and it’s possibly not baked into the BCBA:HPQ stock price.
This is a “No Look Pass” pass..
1. trends.google.com
it’s Google search trend of the phrase “Home Printer”.. Notice the DOUBLING of searches in March.
2. “Ok, we get it Geno.. Everyone was forced to work from home early March and had to buy all this office sh!t so they could work from home. Why would NYSE:HPQ be a trade?”
Answer: Because it’s the 1st thing i realized i needed.
This is the market share breakdown in the Printer world;
1. HPQ, by and landslide share of 34%.
2. Canon CAJ, 19.5%. They reported on 4/23 and just modestly beat both revenue & earnings, for the first time in a while.
3. Epson, at 17%. It trades under the ticker SEKEY, which is Seiko Epson COR/ADR, it’s a pink sheet stock (think: Wolf of Wall Street hookers), that’s traded in the OTC over the counter market. I’m prohibited from trading OTC, but if you got access, awesome-sauce! 👍
For the HP-izzel though, there's 2 tickers.. HPQ, the computer/printer stock.. Not HPE, Bad Bad Bad.
3. HPQ reports on May 21, in a week.. and they missed pretty bad in Feb (Pre Quarentined to work from home) and lowered their estimates for this current Quarter (the Quarentine Quarter). Its the QQ son!
Canon CAJ, already reported on 4/23 and beat estimates and Epson is over the counter pink sheets.
HPQ --- Resistance seen at 24.44 But 11% room to grow for nowHPQ --- Resistance seen at 24.44 a few times now already ---- But 11% room to grow I would think still --- to reach there once more. When something is "knocking on the door" a few times... eventually I think they let 'em in. (or in this case "up"). lol. If sales can be strong and beat estimates on the street. Feb 20 is next earnings report. Only issue seen is that it is at the medium target already ---and the NEWS seen below. (article)
The average price target was sitting at $20.50 with a high forecast of $24.00 from New York analysts. It is on the right path since it did a small pullback down from its high of $25.00 + on Aug 2018, regarding the charts --- it now broke north of the down channel it was on, to the current price point of 21.98.
Reading the artcle: .... ."For more than two months now, Xerox Holdings has been pushing HP Inc. to accept its $32 billion, $22-a-share takeover bid. HP keeps giving variations of the same answer: Not interested. No, thanks. Xerox (ticker: XRX) is done asking. Last week, the printer and copier giant launched a proxy fight for control of HP (HPQ), nominating 11 directors to replace HP’s entire board. Shareholders will vote at HP’s annual meeting, which usually takes place in April. Over the past couple months, HP shares have gradually moved toward Xerox’s $22 offer price. They closed the week at $21.98, suggesting increased confidence that either a deal will get done or HP will find another way to boost the value of its stock.
HP Says Big Buyback Could Be Alternative to Xerox Takeover Bid -----HP Inc. has come out swinging in response to the move by Xerox Holdings Thursday morning to take control of the HP board of directors—and outlined several ways the company could drive increased shareholder value without any involvement from Xerox.
HP to go long NYSE:HPQ
Price was able to breach the downward channel that continued since a year back, Buyers were able to break the 200EMA as well.
If price is able to stay above the 200EMA price is expected to target the 24.00 area, but will be expected to meet resistance around the 20.60 and the 21.00 area’s
Stop-loss should be below the 200EMA sitting at 19.00.
HP - DAILY CHART Hi, today we are going to talk about HP
We observe a D1, some important points. The details are highlighted above.
Thank you for reading and leave your comments if you like.
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