Followers | 680 |
Posts | 141062 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Friday, January 22, 2021 4:08:19 PM
By: Schaeffer's Investment Research | January 22, 2021
• A sector-wide dip for energy-related stocks is weighing on the equity
• Options bulls aren't deterred by SLB's pullback
Oil services and equipment provider Schlumberger (NYSE:SLB) is sinking this morning, despite a fiscal fourth-quarter earnings and revenue beat. While the company reported its first quarter-over-quarter increase in revenue since its third quarter of 2019, a sector-wide drop for energy-related stocks is putting a damper on SLB. At last check, the security was down 0.7% at $24.
The equity has been testing support at the 320-day moving average this month. The trendline coincides with the $24 level, which is also home to SLB's pre-bear gap lows. While the oil stock is now on track for its third-straight drop, the 40-day moving average sits just below as a potential net as well, keeping the security at a roughly 10.2% lead year-to-date.
Sentiment surrounding SLB has been generally optimistic. Of the 17 analysts in coverage, 11 consider it a "buy" or better, compared to just six "hold" ratings. Plus, the 12-month consensus price target of $25.64 is roughly a 7% premium to current levels.
Adding to this, SLB sports a 50-day call/put volume ratio of 5.43 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than all other reading from the past year. This suggests long calls haven't been more popular in the past year.
A look at today's options activity shows more of the same. So far, 14,000 calls have crossed the tape -- twice the intraday average -- compared to over 2,000 puts. The weekly 1/29 26.50-strike call is the most popular, followed by the weekly 1/22 25.50-strike call.
All things considered, now looks like an opportune time to get in on Schlumberger stock's next move with options. The equity's Schaeffer's Volatility Index (SVI) of 51% sits in the particularly low 14th percentile of its 12-month range. This means options players have been pricing in relatively low volatility expectations.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM