A recent Wall Street Journal article noted Halliburton (HAL) was planning on expanding its Middle East operations. The company will also move its headquarters from Houston to Dubai. Company CEO, Dave Lesar has committed to spending nearly half of his time in Dubai and the UAE.
Audio Podcast:
An audio podcast of this article is available at: poweropt.com/podcasts/2007_03_11_HAL.mp3
The article quoted the CEO as saying, “Growing our business here will bring more balance to Halliburton’s overall portfolio.” This may be a wise position as US’s attitude towards the war begins to cool. This could potentially lessen the opportunities for profitable ventures in the region.
| Signup now for PowerOptions free 14-day trial |
It has been reported the company has major subsidiaries located in Dubai as a tax shelter. The company could generate growth through tax savings with the move as Dubai is noted for its liberal tax laws.
| Signup now for PowerOptionsApplied 30-day risk free trial |
Oil & Gas Drilling and Exploration:
Another company showing up in a PowerOptions SmartSearchXL screening for oil and gas drilling companies was Nabors Industries (NBR). It was reported last week the company might be bought in a management-led buyout or leveraged buyout. This is on the heels of reports the company misdated several stock options.
Potential Trades:
All of the following option trades have 40 days until expiration. Halliburton is currently trading at $32.02. Nabors Industries is currently trading at $29.79. These trades were discovered using the powerful suite of option search tools found at PowerOptions.
| Covered Call – Halliburton (HAL) $ 32.02 (40) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OPTION | Strike Info |
Opt Bid |
% Dnsd. Prot. |
% If Unch. |
% If Asgnd |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HALDS | 07 APR $32.5 | $0.80 | 2.50% | 2.60% | 4.10% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Covered Call – Nabors Industries (NBR) $ 29.79 (40) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OPTION | Strike Info |
Opt Bid |
% Dnsd. Prot. |
% If Unch. |
% If Asgnd |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NBRDF | 07 APR $30.0 | $1.10 | 3.70% | 3.80% | 4.60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Halliburton covered call trade, an out of the money covered call, offers 2.5% downside protection and a potential profit of 2.6% if the stock remains unchanged. If the stock rises above the $32.50 strike price of the option, the potential profit becomes 4.1%. The break-even price of this trade is $31.22. The net cost of this trade, per 100 options, is $3,122.00.
The Nabors Industries covered call trade, an out of the money covered call, offers 3.7% downside protection and a potential profit of 3.8% if the stock remains unchanged. If the stock rises above the $30 strike price, the potential profit becomes 4.6%. The break-even price of this trade is $28.69. The net cost of this trade, per 100 options, is $2,869.00.
Competitors:
Competitors for HAL include: Schlumberger Limited (SLB), Technip (TKP), Bechtel Group, Inc. (private), AMCOL International Corp. (ACO), Basic Energy Services Inc. (BAS), Baker Hughes Inc. (BHI), BJ Services Co. (BJS), Core Labs. NV (CLB), Foster Wheeler Ltd. (FWLT), Newpark Resources Inc. (NR), Roper Indus. Inc. (ROP), Smith Intl. Inc. (SII), TETRA Techs. Inc. (TTI), Weatherford Intl. Inc. (WFT), and W-H Energy Srvs. Inc. (WHQ).
Competitors for NBR include: Globalsantafe Corp. (GSF), Patterson-UTI Energy Inc. (PTEN), Pride International Inc. (PDE), Basic Energy Services Inc. (BAS), Bronco Drilling Co. Inc. (BRNC), Grey Wolf Inc. (GW), Helmerich & Payne Inc. (HP), Pioneer Drilling Co. (PDC), Precision Drilling Trust (PDS), and Unit Corp. (UNT).
For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions‘ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.
PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of the covered call investment strategy.
PowerOptions‘ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, naked puts and iron condor stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.
[tags] Middle East, Houston, Dubai, Dave Lesar, UAE, Bechtel Group, Inc., ACO, AMCOL International Corp., BAS, Basic Energy Services Inc., BHI, Baker Hughes Inc., BJS, BJ Services Co., BRNC, Bronco Drilling Co. Inc., CLB, Core Labs. NV, FWLT, Foster Wheeler Ltd., GSF, GlobalSantaFe Corp., GW, Grey Wolf Inc., HAL, Halliburton Co., HP, Helmerich & Payne Inc., NBR, Nabors Indus. Inc., NR, Newpark Resources Inc., PDC, Pioneer Drilling Co., PDE, Pride Intl. Inc., PDS, Precision Drilling Trust, PTEN, Patterson Energy Inc, ROP, Roper Indus. Inc., SII, Smith Intl. Inc., SLB, Schlumberger Ltd., TTI, TETRA Techs. Inc., UNT, Unit Corp., WFT, Weatherford Intl. Inc., WHQ, W-H Energy Srvs. Inc., covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options [/tags]