Halliburton Stock Pops on Saudi Arabia's Crude Comments

So far today, 17,000 calls have already crossed the tape

Digital Content Manager
Aug 23, 2022 at 12:04 PM
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Oil and gas stocks are on the rise, with crude prices jumping on the heels of Saudi Energy Minister Prince Abdulaziz bin Salman's comments that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) could cut production to address economic challenges. The input is fueling supply concerns, with hydraulic fracturing name Halliburton Company (NYSE:HAL) last seen up 8.5% to trade at $31.68.

Options traders are already placing their bets, with 17,000 calls and 6,360 puts across the tape so far, which is double the average intraday volume. The most popular contract is the September 30 call, followed by the 8/26 30.50-strike put, with new positions being opened at the latter.

An unwinding of pessimism among short-term options traders could keep these tailwinds blowing for the equity. This is per HAL's Schaeffer's put/call open interest ratio (SOIR) of 1.02, which sits higher than 90% of readings from the past year, indicating these traders have rarely been more put-biased.

It's also worth noting the security's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 90 out of 100. In other words, Halliburton stock has greatly exceeded option traders' volatility expectations during the past year.

The security is today trading at its highest level since late June, after testing a floor at the $27 level over the last several weeks. The 60-day moving average looks like it may contain today's surge, though year-over-year Halliburton stock already boasts a 63.9% lead. 

HAL 60 Day 

 

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