After a dramatic plunge, Halliburton shares have bounced well above Wednesday's lows. And one options trader is betting that the momentum will continue.
In Thursday's biggest Halliburton options trade, a firm bought 4,000 November 62.50-strike calls for 40 cents. Since a call gives its owner the right to buy a given stock at a given price and time, this trade will be profitable as long as Halliburton shares rise above $62.50 by more than the cost of the calls—or above $62.90 by November expiration.
It's been a rough ride for Halliburton shares recently. As oil prices have cratered, the company's shares lost as much as 25 percent from the beginning of October to their bottom on Wednesday, before bouncing back.
And in fact, as Halliburton shares have slid, so has the value of that call option. Worth about $4 on the last day of September, it was purchased for a tenth of that 12 sessions later.