Put Selling Safely Hewlett-Packard Stock (HPQ)

I received a lot of emails this morning asking me what I thought about Put Selling within HPQ Stock. Since the collapse of HPQ Stock the put premiums have been simply superb but many investors have stayed away from Put Selling for fear of being assigned shares. Instead consider that there is a way to safely do Put Selling  against HPQ Stock and earn those juicy put premiums while avoiding stock ownership.

Hewlett-Packard Stock has had a rough 12 months. Feb 23 2012 it was trading for $27.00 and then commenced a decline of 56.7% to $11.71 on November 20. In 2011 Hewlett-Packard Stock reached over $48 and in 2010 it traded as high as $54. HPQ Stock has certainly fallen and many Put Selling investors have been assigned shares along the way. But they needn’t have been if they had followed this strategy to safely done Put Selling within the decline of HPQ Stock.

Put Selling Fear Of Ownership

Since the decline to just below $12.00 HPQ Stock has managed to recover back to $18.75 at the time of writing this article (Feb 22 2013 mid-morning). From the lows of roughly $12, this marks a 60% move back up. Put Selling during this period provided exceptional returns of often 3% to 4% in a month but many Put Selling investors stayed away fearful that the decline was not over and they would end up assigned shares.

HPQ Stock One Year Chart

Throughout all of this, Hewlett-Packard Stock has clawed its way higher while the company has maintained and increased its dividend against a backdrop of declining sales especially in the PC Market which is certainly showing the impact that tablets and to a lesser extent smart-phones is having on the PC market.

Hewlett-Packard Company has a lot of issues including an unbelievably complex and barely functioning myriad of departments and even worse, buildings and rental locations around the globe. Basically Hewlett-Packard really needs a strong shake-out and a better focus on what it wants to do. Just like Dell, Hewlett-Packard has been hurt by companies like Lenovo Computers. Lenovo laptops have received not only high praise by independent reviews but also a variety of awards.

Put Selling HPQ Stock For Juicy Returns

Following the decline I have had a lot of investors asking about Put Selling while avoiding ownership of HPQ Stock to try to earn some of those juicy Put Selling premiums. This morning’s news that sales were still down in the last quarter but earnings were better than expected has a lot of investors bullish once more on HPQ Stock. The belief is that the restructuring that is underway is beginning to show positive results to the bottom line. Whether this is the case, will be the case or is the case I have no crystal ball outlook, but for Put Selling against HPQ Stock there are some clues an investor can use to safely do Put Selling for above average returns despite the recent collapse of HPQ Stock.

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