Large bet on Hewlett Packard Enterprise

A huge trade is counting on Hewlett Packard Enterprise to rally by early next year.

Investitute’s tracking systems today found that 14,000 January $22 calls were purchase in two prints for $0.55 and $0.60 with the stock at $18.75. There was no open interest in the strike before the trade appeared, showing that this is a new position.

These contracts are looking for shares to rise above $22.55-$22.60 by expiration in mid-January 2018. HPE closed yesterday up 0.49 percent to $18.61.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

The stock gapped down from the $18.50 level after its last earnings report on Feb. 23 but has been working its way higher in the last month. The business-technology company is expected to announce its next quarterly results in mid-May.