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.