Those calls lock in the price investors must pay to buy stock in the oil-service company and will enjoy some nice leverage in the event of a rally. If it fails to go up, however, the options will expire worthless.
Halliburton shares rose 0.61 percent to $29.57 yesterday. Its quarterly stock performance has been brutal, with a drop of more than 20 percent earlier this month, but it’s been edging off those lows in the last week or so.
UBS recently recommended the name as part of an aggressive diversified stance in anticipation of reduced earnings risk, valuations, and higher oil prices. Transocean was also a favorite.
Calls outnumbered puts by almost 3 to 1 yesterday, reflecting the session’s bullish sentiment.
—By CNBC Contributor Pete Najarian
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC’s “Fast Money” and co-founder of OptionMonster.com. Najarian owns Halliburton calls.