Thursday, February 16, 2012

Rolled HPQ Calls Out and Up.

As discussed here , CCI had sold one lot of Feb $28 covered calls.  Earlier this week CCI rolled those calls out to the Mar $29 calls for an insignificant $.04/contract credit.  HPQ continues to have an attractive valuation based on some of its often discussed issues.  It reports earning next week.  If I were Meg Whitman, (new CEO) I would like to try to paint a picture of stability not wildly optimistic upside.  Hence, I'm thinking this earnings announcement will be at best "in-line".  If that is true and the stock pulls back after earnings,  this option roll-out will provide some yield enhancement.  If I'm wrong and the stock continues its climb for a month we can either roll again or more likely let the shares go.

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