Sagar Nandi
Earnings play with a high reward-risk ratio.

$HPQ.

All the snapshots are taken around (EST): 2:30 PM.

IMPORTANT: As the price may move up or down during the day, you may confirm a swing trade setup at or near market close.

1) I noticed HPQ from CUE Edge Insight category of best performing value stocks.

2) Industry scorecard shows HPQ's industry, Technology Hardware, Storage & Peripherals, is strong today.

3) The stock is undervalued. That gives a low-risk buy point in terms of fundamentals.

4) Earning is on 9th May, and that makes it an earnings-play trade. Those trades are risky as technical analysis may not have it typical predictive value at earnings.

5) Weekly is making a false downside breakout. That is bullish. However weekly candle has not turned neutral (yellow) or bullish (cyan) yet. That is a concern.

6) Daily has a bullish shape candle with Bull Release signal. It is also creating a false downside breakout.

7) HPQ is going up with Extreme Bullish Pressure.

8) It is creating a Reversal at Pendulum/Price Extreme Low.

9) Using short-call-vertical that has 65 days to expiry, you may get (10) very high reward-risk ratio that has (11) 66% probability of making half of max-profit. That looks attractive to me.

hpq edge 1 2019-05-15_14-25-15.jpg  hpq edge 2 2019-05-15_14-27-01.jpg  hpq funda 1 2019-05-15_14-15-50.jpg  hpq tech 1 2019-05-15_14-12-25.jpg  hpq tech 2 2019-05-15_14-10-48.jpg 
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Sagar Nandi
Once again a successful trade where you could buy the stock at the very bottom. And a successful earnings play trade as well.

1) On 15th May, I had shared a pre-earning bullish trade in HPQ. I had taken the trade using call vertical.
 
2) Earning is out today on 24th May. The position has a 53+% profit.
 
It is time to book at least a partial profit as the stock is near a Memory Resistance line in the daily chart.
 
You could book profit on enough lots to get the investment money back and try to let profit run on the remaining lots, making it a guaranteed risk-free trade.
 
HPQ chart 2019-05-24_12-12-45.jpg  HPQ PnL 2019-05-24_12-04-58.jpg 
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Disclaimer: This site is for educational purposes only, explaining the use of CUE systems and techniques. It is not for trade advice. Trading involves risk. You and only you are solely responsible for the outcome of your trades.

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