Hallburton (HAL) touches a new 52-week high and is up $1 to $44.88. A noteworthy options trade is a July 45 – Jan12 50 call spread, bought at 40 cents, 4000X and is possibly an opening reverse timespread. On the other hand, it’s possibly a closing trade or position adjustment, as open interest is sufficient to cover in both contracts. Separately, the Feb 38 – Mar 38 (2X1) put ratio spread trades 2500X, as it appears that 2500 March 38 puts were sold at 42 cents to buy 5000 Feb 38 puts at 12 cents, which might also be closing or rolling activity. HAL shares have now rallied 13.5 percent since earnings were reported on 1/24. Implied volatility is flat at 35, compared to a 52-week high and low of about 73 and 29.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.