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UPDATE: Trading Hewlett Packard's CEO Debacle

On Wednesday, chatter on the floor had everything to do with the future of Hewlett Packard after a published report in the Wall Street Journal suggested some big changes may be on the horizon.

Specifically the paper said H-P’s board may be looking to replace CEO Leo Apotheker with someone like eBay CEO Meg Whitman.

The speculation comes amid strong skepticism about the company’s direction.

”Shareholders are beside themselves over the decline in share price, the company missing targets, the spinout of the PC business in such a haphazard way and the debacle with web OS,” explains Jefferies analyst Peter Misek.

”Meg Whitman – it’s probably the right move,” Misek adds. “She’s an Internet pioneer – and the future of HP is based on embracing the Internet fully with their devices -- like Apple has. She would be a great interim step – and certainly we wouldn’t expect any violent surprises from her."

Of course, that begs the question – just how likely is the H-P board to act. According to CNBC sources the board is meeting to ‘talk about issues’ and a new CEO could be one of them.

Trader Brian Kelly thinks something else is going on at H-P. He says if H-P shows Apotheker the door, it opens up the possibility of HP being a take out target.

And Kelly suggests Oracle could be interested. “The stock is cheap and former H-P CEO Mark Hurd is over at Oracle. Perhaps it opens that door.”

During Mark Hurd's tenure, he slashed expenses, increased profitability and unlocked shareholder value - with the stock touching a 10-year high around $53 in April 2010.

And that leads to perhaps the most important question for Fast Money fans – how do you trade it?

Trader Steve Cortes says if you want to be long in this market – and he doesn’t – but if you do, developments make H-P worth a flier.

Trader Steve Grasso says price is truth and the stock is climbing on the news, but he adds that his clients are selling the pop.

Trader Joe Terranova is disgusted. He thinks the leaks are going to take a big toll. "You know what this does for H-P. It puts it in the same position as Yahoo! I think we see employee defections."

Trader Stephen Weiss says don't hold onto hopes that Oracle is going to buy that. "It's a $50 billion market cap. And I'd assume they'd have to pay a premium to that."






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Trader disclosure: On Sep 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss is short BTU; Weiss is short CNX; Weiss is short TBT; Weiss is long QCOM; Weiss is long EUO; Weiss is long SDS; Weiss is long CDX; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Terranova is long VRTS; Terranova is long OXY; Terranova is long HOS; Terranova is long OIH; Terranova is long CVI; Terranova is long AXP; Terranova is long EMC; Terranova is long WFM; Terranova is long AMZN; Terranova is long PCP; Terranova is long CF; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM; Finerman owns HPQ; Finerman owns YHOO; Finerman owns AAPL; Finerman owns BAC leaps; Finerman owns IBM and short calls; Finerman is long JPM; Finerman owns MSFT; Finerman owns ORCL; Finerman’s firm owns AAPL short calls; Finerman’s firm owns BAC; Finerman’s firm owns GOOG; Finerman’s firm owns JPM leaps and long puts; Finerman’s firm owns MSFT and short calls; Finerman’s firm owns ORCL; Finerman’s firm owns IWM; Finerman’s firm owns MDY; Finerman’s firm owns SPY; Cortes is long SO; Cortes is long CAG; Cortes is long Treasuries; Cortes is short EUR; Cortes is short AUD; Cortes is short S&P Futures; Stutland is long TLT; Stutland is long CSCO and has short calls; Stutland is long IBM and has short calls; Stutland is long INTC and has short calls; Stutland is long QCOM and has short calls; Stutland is long GLD and holds long option positions in calls and puts; Stutland is long TLT and has short calls and short puts; Stutland is long NLY and has short put spreads ; Stutland’s firm is a market maker of VIX

For Mike Vorhaus
**No disclosures

For Jim Iurio
Iuorio has long calls in VXX

For Rob Enderle
HPQ is a client of Enderle Group

For Jeff Saut
Raymond James is market maker of LINE

CNBC.com with wires.