Options Corner: HPE All-Time High Run Into Earnings
Why It Matters
The trade offers a cost‑effective way to profit from HPE’s momentum and earnings catalyst, signaling continued strength in the server infrastructure sector.
Key Takeaways
- •HPE shares up 116% YoY, hitting 52‑week high.
- •Technical chart shows bullish breakout from steep upward channel.
- •RSI remains overbought above 70, slight bearish divergence noted.
- •Suggested $42/$50 call vertical offers low‑cost upside exposure.
- •Break‑even price near $44, within one‑standard‑deviation move expected.
Summary
HPE (Hewlett Packard Enterprise) surged to a new 52‑week high, up 116% year‑over‑year, prompting options analysts to dissect the move ahead of its earnings report.
Technicians highlighted a steep upward channel culminating in a bullish breakout above the 38.58 level, with RSI staying over 70 despite minor bearish divergence. Support zones identified near $34‑$35 and $32, while the 5‑day EMA sits just under $37.
Options strategist Tom White recommended a $42‑$50 call vertical expiring in June, costing about $240 debit, giving a break‑even near $44—well within the market‑priced ±$6 move for the earnings window.
The low‑capital strategy lets traders capture upside without full share exposure, while reflecting broader confidence in server‑infrastructure firms as Dell, Cisco and others rally, potentially shaping positioning ahead of HPE’s earnings.
Comments
Want to join the conversation?
Loading comments...