Stable Oil Prices Sets Up Well For Halliburton Near-Term

The stabilization in energy prices lately has meant relief in some oil & gas stocks. Halliburton shares have been one of them, putting in a series of higher lows since mid-January. The pullback in the previous two weeks sets up for a low risk buying opportunity (stop loss under $41.90). HAL is now poised to fill the gap from November ($46.70-$47.50 range) in the coming months with near-term resistance at $45.

Options Trade Idea: Sell the Mar 20 $41/$42 bull put spread for a $0.23 credit or better (still using the $41.90 level as a stop loss reference to minimize risks). Look to take profits at $0.05 credit and/or a move to $45 in the stock.