8-14-09 HPQ Short, Primary Extension Fade

This mornings set-up is on HPQ. HPQ is extended beyond 20%, which is fastly approaching HPQ's historical limitations. Under current market conditions (extreme extensions within the ETFs and indices) we are goingto give HPQ a little more room to run. We are going to cover the extension up to around 50%, which has not ever been achieved from HPQ. The initial entry is 1 lot of January 60 Puts at 44.47.



Entry QTY
44.47 1
45.92 1
47.17 1
48.27 1
49.22 1
50.05 1
50.77 1
51.40 1
51.94 1
52.42 1
52.83 1
53.19 1
53.50 1
53.77 1
54.01 1
54.21 1
54.39 1
54.55 1
54.68 1
54.80 1

Stop 55.00

Stock Profile
Capital Required 103,155
Draw-down at tier 20 -6,447
Drawdown at tier 20 (%) -6.37%
Profit Range 195 - 6,568
Return on capital utilization (estimated) 6.37%
Stop Loss 6,844.51

Option Profile
Capital Required 18,376
Draw-down at tier 20 -5,782
Drawdown at tier 20 (%) -33%
Profit Range 195 - 5,748
Return on capital utilization (estimated) 31.28%
Stop Loss 6,844.51