Options Trade – Halliburton Company (NYSE:HAL) Calls 
Monday, July 21, 2014

**OPTIONS TRADE: Buy the HAL Oct 2014 70.000 call (HAL141018C00070000) at or under $3.75, good for the day. Place a protective stop limit at $1.45 and a pre-determined sell at $6.50.

by Ian Harvey

July 21, 2014

Introduction

Halliburton Company (NYSE: HAL), an oilfield services company, providing services and products to the energy industry related to the exploration, development, and production of oil and natural gas, said this morning, that its second-quarter earnings rose 20 percent, and it raised its share buyback authorization to $6 billion.

The Houston-based company earned $774 million, or 91 cents per share, for the period ended June 30. That's up from $644 million, or 69 cents per share, a year ago.

The average per-share estimate of analysts surveyed by Zacks Investment Research was for a profit of 92 cents.

Revenue climbed 10 percent to $8.05 billion from $7.32 billion, beating Wall Street's forecast of $7.88 billion.

Halliburton also announced that it is promoting Executive Vice President and Chief Operating Officer Jeff Miller to president. He will also become a board member. Both appointments are effective on Aug. 1. Miller has served as executive vice president and COO since 2012.

It also declared a third-quarter dividend of 15 cents per share. The dividend will be paid on Sept. 24 to shareholders of record on Sept. 3.

Analysts Opinions

Halliburton Company (NYSE:HAL) has earned a consensus recommendation of “Buy” from the thirty brokerages that are currently covering the stock. Six equities research analysts have rated the stock with a hold rating, nineteen have issued a buy rating and one has given a strong buy rating to the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $73.86.

The company has been the subject of a number of other research reports:-

• Analysts at Goldman Sachs raised their price target on shares of Halliburton Company from $79.00 to $87.00 in a research note on Thursday, July 10th.

• Separately, analysts at Susquehanna raised their price target on shares of Halliburton Company from $75.00 to $88.00 in a research note on Wednesday, July 2nd.

• Finally, analysts at Credit Suisse reiterated an “outperform” rating on shares of Halliburton Company in a research note on Monday, June 23rd. They now have a $79.00 price target on the stock, up previously from $78.00.

Conclusion

Halliburton has been on an amazing run over the last six months, but its valuation is still not high enough to cause too much concern, with a P/E of 22.8. The company has done a good job as of late topping analyst estimates, posting better than expected results, now with seven quarters in a row.

Energy prices have been rising, which should result in increased drilling, and stronger earnings for oil equipment and service companies like Halliburton. This sector is appearing very bullish and with Halliburton posting strong quarterly numbers, this options trade looks good.

Therefore, based on the facts above the following options trade is recommended…..


**OPTIONS TRADE: Buy the HAL Oct 2014 70.000 call (HAL141018C00070000) at or under $3.75, good for the day. Place a protective stop limit at $1.45 and a pre-determined sell at $6.50.



”Success is simple. Do what's right, the right way, at the right time.”


Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.



Back to Stock Options Made Easy Home Page

Back to Option Trades from Options Trade – Halliburton Company (NYSE:HAL) Calls - Monday, July 21, 2014




Search Stock Options
Made Easy



Enjoy Relaxed or Fast-Paced Trading? Choose your Membership Style...

Whether you prefer to take a laid-back approach to your trading,

or to charge ahead in your options trading,

 Stock Options Made Easy Armchair Trader and Cut-to-the-Chase Trader Memberships put everything you need to succeed at your fingertips for just  $39 or $79 per month.






Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name











Follow S_O_M_E on Twitter