Calls Pop on HAL Stock After Earnings Beat

Analysts were already bullish on the oil concern

Digital Content Manager
Jan 21, 2020 at 1:41 PM
facebook twitter linkedin

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




Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1