Hewlett-Packard (HPQ) volatility low into Q1 and capital allocation outlook

Hewlett-Packard (NYSE: HPQ) March and May put option implied volatility of 33 is below its 26-week average of 40 according to Track Data, suggesting decreasing price movement into the expected release of Q1 results on February 22. RBC Capital Markets say’s “$4.00 EPS target is beatable and should capital allocation improve the stock should continue outperforming its peers.”

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