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Booting Up For Earnings

Hewlett Packard
AP
Hewlett Packard

The last of the big tech earning will arrive on Tuesday, when Hewlett-Packardreports results.

Currently the options market is pricing in a 6.5% move on the big day, which would be slightly more than the 6% move that the stock recorded over the last four quarters.

Couple things have been working against the name this year: Company boss Mark Hurd recently cited the challenging environment for tech, and its bread and butter desktop business recorded a 25% hit to the top line last quarter.

Still, there are some things working for HPQ , including reduced expectations that were shaped by last quarter's sluggish guidance.

Also, on a valuation basis, the stock is cheap, trading around nine-times next years earnings, a discount to its peers.

Could opportunity be knockin'? We'll break it all down tonight, including how options traders are setting up for the big day.

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Questions, comments send them to us at: optionsaction@cnbc.com

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    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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