Every evening and on weekends I spend time looking through my list of stocks for potential trade opportunities that may be forming. This article looks at how I often approach a stock to determine the trades I might enter and which way I think the stock is preparing to move. For this article I look at Hewlett-Packard stock which trades under the symbol HPQ. I have sold puts against HPQ Stock since November 2013 as the stock has been in an uptrend. That uptrend has been slowly turning into more a sideways movement rather than still up, but it has failed to fall back so the uptrend remains in place.
Hewlett-Packard Stock (HPQ)
Since last fall Hewlett-Packard Stock has surprised many analysts as it has continued to move higher. Since Mid-March the stock has actually turned more sideways than up which has made the trade easy to implement. Meanwhile revenue and earnings continue to improve for HPQ and it is back toward the higher end of its latest trading range. There are signs though that a move higher in the stock may continue to elude HPQ certainly at the present time. Before delving into those signals along with the trade ideas, let’s look at the past 6 months