Halliburton (NYSE:HAL) reported better than expected earnings this week and received a number of analysts’ upgrades. Technically, the stock broke out of a volatility squeeze yesterday on heavy volume. We think the stock has further upside from here.
Noting that the S&P500 is flirting with the 1300 level at the time of writing, and might feel a little extended, one can take a conservative position by initiating the 43/45 Call spread expiring on Feb 18. The spread can be bought for 75 cents debit, with a maximum potential profit of 1.25, if HAL trades at or above 45.00 by Feb expiration.
– DevTrade (Full Disclosure: Long Feb 43/45 Call spread in HAL at the time of writing)
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