Schaeffer's Top Stock Picks for '25

Options Bulls Blast Halliburton Stock After Earnings Beat

A post-earnings volatility crush has made premium affordable

Deputy Editor
Oct 19, 2020 at 10:12 AM
facebook X logo linkedin


Oil service stock Halliburton Company (NYSE:HAL) is up 1.9% at $12.48 this morning, after the company reported fiscal third-quarter earnings that bested Wall Street's forecasts. Gains are capped though, after revenue missed its mark, with lower oil prices taking their toll on demand for Halliburton's services.

Much like the oil sector in general, HAL has experienced an extremely tumultuous year. While the stock has tripled off its nearly 20-year low of $4.25, it remains down 48.7% in 2020. Meanwhile, the shares' 120-day moving average has acted as a stiff layer of resistance since mid-September.

Calls are flying off the shelves today. In just the first hour of trading, over 8,000 calls have changed hands, volume running at three times the average intraday amount. Leading the charge is the weekly 10/23 12.50-strike call, but there are also new positions being opened at the November 12.50 call.

Those wanting to get in on the equity's rise may want to consider options. Thanks to a volatility crush, traders are pricing in relatively low volatility expectations at the moment, per the stock's Schaeffer's Volatility Index (SVI) of 65%, which sits higher than just 17% of all other annual readings.

Plus, HAL's Schaeffer's Volatility Scorecard (SVS) stands at 94 out of a possible 100. In other words, the security has tended to make outsized moves over the last year, compared to what the options market had priced in -- a potential boon to premium buyers.

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter