Technical tools used:
- Moving Averages
- TrendlinesBrian Overby’s short term strategy based on Michael’s Analysis – Long Call Spread
Schlumberger is planning to announce earnings on the morning of Expiration Friday for the January options, which is January 18th. Because the next level of resistance is about 77.60 and 39 days to expiration/earnings, we will take a look Long Call Spread in January.Possible Trade - Long Call Spread
- Buy 1 Jan SLB 72.50 Call
- Sell 1 Jan SLB 77.50 Call
- 39 days to expiration
- Net Bid 1.74, Ask 1.78, Mid 1.76
- Total debit is 1.78 if we can get filled at the Ask.
- Maximum potential loss is $1.78
- Maximum potential gain is $3.22
- Total commission to enter this trade is $5.60Possible Additional Short Term Trade - Long Call
- Buy 1 Dec SLB 72.50 Call
- 11 days to expiration
- Net Bid 1.33, Ask 1.35
- Total debit is 1.35 if we can get filled at the Ask.
- Maximum potential loss is $1.35
- Maximum potential gain is Unlimited if the stock goes to infinity. (Not going to happen)
- Total commission to enter this trade is $5.60
**NOTE: option prices are given as a per contract amount. Multiply loss and gain figures by 100 shares and by the number of contracts traded to determine the amount of the full potential loss or full potential gain. No additional calculations are needed to determine commission costs.
TradeKing Options Tools used:
- Detailed Quote
- TradeKing Long Call Spread
- TradeKing Long Call
- TradeKing Volatility Charts
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