Calls Pop on HAL Stock After Earnings Beat

Analysts were already bullish on the oil concern

Deputy Editor
Jan 21, 2020 at 1:41 PM
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Oil producer Halliburton Company (NYSE:HAL) stepped into the earnings confessional this morning to report adjusted fourth-quarter earnings of 32 cents per share on $5.19 billion in revenue -- both of which beat analysts' estimates. The firm cited increased activity globally, specifically in the Middle East, Asia and the North Sea, with a 10% growth in international revenue.

The earnings beat has the options pits brimming with activity. So far, 30,000 calls and 10,000 puts have crossed the tape -- double the average intraday amount. The April 25 call is seeing a lot of activity, with positions possibly being sold to open here. The weekly 1/24 23.50-strike call is also quite popular, with positions being opened here as well. 

This preference for calls isn't unusual. At the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) calls have almost doubled puts in the last 10 days. 

While analysts haven't chimed in on Halliburton's earnings beat, there's already plenty of optimism among the brokerage bunch. In fact, fifteen of the 21 in coverage consider HAL a "buy" or better. Plus, the 12-month consensus price target of $27.40 is a solid 13.3% premium to current levels. 

Taking a look at the charts, HAL has managed to tack on 28% since its late-August bottom near the $17 region, with support emerging at its 20-day moving average. The $23.50 region has also swooped in to act as support, catching a recent pullback that put the equity back below the aforementioned 20-day. For the day, the stock is up 1.3% to trade at $24.26, on track for its third straight win. 

HAL Chart Jan 21

 

 

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