Hewlett-Packard is continuing its surprising rebound, and last-minute buyers stepped in yesterday in search of even more gains.
About 5,000 April 23 calls were purchased, most of them in the final 45 minutes of the session for $0.21, according to optionMONSTER's real-time Heat Seeker system. Open interest in the strike was 2,202 contracts before the session began, indicating that yesterday's action was fresh buying.
HPQ rose 1.76 percent yesterday to close at $21.40. The computing giant hit a decade low of $11.43 last November but gapped higher on quarterly results last month and has been rising ever since.
The calls bought yesterday, which lock in the price where traders can buy the stock, are looking for HPQ to climb above $23 by mid-April. They can provide significant leverage in the event of a rally but can expire worthless if shares remain below that strike price. (See our Education section)
(A version of this post appeared on InsideOptions Pro yesterday.)
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