Options Action

Booting Up For Earnings

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.


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