As an options trader, it is prudent to use technical as well as fundamental analysis when looking for potential trades. Here is one such example that looks pretty bullish using both methods.

There has been a lot of uncertainty with Hewlett-Packard Co. (NASDAQ:HPQ) lately. The company has had well-publicized management problems, and it just can’t seem to decide which direction the computer giant should focus on.

That being said, many analysts agree that the company is still very profitable and undervalued. HPQ still sells the most personal computers of anyone.

Technically, the stock has come off its recent lows at about $22 and has been trending up. The stock recently had a nice little pullback and, on Friday, the stock started to move up again. If the stock can get over a resistance area at about $26.30, HPQ might be able to fill the gap it left in August.

A nice target for HPQ would be around $30. If the stock drops below $24, a support area, consider exiting the long position.

The trade:  Buy the HPQ Nov 26 Calls for $1.50 or less.

The strategy: The long call strategy is relatively easy to understand. The trade profits when the stock rises and the call premium increases as the option moves toward being in-the-money (for a long call, that means the strike price is below the market price of the shares) and beyond.

Your maximum profit is unlimited because HPQ can continue to rise. The maximum loss is $1.50 — what you paid to enter the trade — if HPQ finishes below $26 at November expiration, which is one trading day before the company releases earnings, so you’ll be out of the trade before the news hits the tape.