| |
| |
| |
Schlumberger (SLB) the target high price of the stock by Friday 13th is $113.76, total profit for this chicken straddle is currently at $1200. If (SLB) hits price target of $113 net profits will be increased to $2300.
Jan 2, 2006
Schlumberger (SLB): Buy long 2 Jan $90 calls and 4 Jan $85 puts for a total cost of $2240. The high prices for the calls were reached at $14 on Dec 13th, if closing at that price would make you positions profitable. Total cost was $2240 - (2 contract x 14= $2800) for a net profit of $560. A 25% profit using $2240 for placing the Schlumberger straddle. Since these are expiring in Jan., the short term move off the 50 day moving average will either support the next move higher or prices will collapse back to the Oct. lows around $78. If prices reach that low by expiration you will have another net profit $500 or more.
Currently SLB is coming back to reality just as oil prices have slumped below $60 a barrel. NOtice consolidation around the Harmonic Stock Clock yellow Signal line!
|
|
|
