Long-term Trade on Hewlett Packard (HPQ)

Just like the Pfizer trade we executed today, we are looking to enter low PE positions that are in clear uptrends and the potential for future gains.  HPQ in particular has held up very well in the recent market pull back.  It has even traded up on days when the DOW was down triple digits, and current trades at a PE of 11.95.  If we were to pick a name in the tech sector that seemed to be low on the risk scale, priced attractively, and has a positive outlook for growth and stock appreciation -- HPQ would fit that criteria.  

We are selling the January 2016 $30 Puts for $4.11, and buying the January 2016 $30 Calls for $5.90.  This trade costs us $179 per set of contracts that we trade.  These options expire in January 2016, so we have a long time until expiration and we won't be looking at short term fluctuations in the day to day price.

If HPQ trades below $25.89, we will have to purchase the stock at $30 minus the credit from today, this is a price that is roughly 20% below today's trading price of $32.60.