HPQ Hewlett Packard/Compaq pops higher at the open. It traded as high as 37.25 premarket. It dips below 35 before finding some trader support (5-day-chart). I had this stock earlier, but got spooked and sold out, leaving a lot of money on the table.
A buy/write strategy will leave a lot of profits out there if a stock rockets higher. However, over time they do as well as buy and hold with less risk. It is not so easy to buy and have a stock immediately go up. If it were, everyone would do it ;).
Last month's option expiration week had a bearish bias. This week, so far has favored the bulls. It is often like that as traders get conditioned to expect something, and then the market does the opposite.
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