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Halliburton Co. (NYSE: HAL) opened at $35.47. So far today the stock has hit a low of $35.12 and a high of $35.47. As of 10:50, HAL is trading at $35.17, down $0.55 (-1.5%).After hitting a one-year high of $37.93 in July 2006, the stock fell to a year low of $26.33 in October. Though the stock has been rising over the past few months, there is some strong resistance in the mid-30s. HAL is faltering today with falling crude oil futures. Recent technical indicators for HAL have been bullish but deteriorating, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.
For a bearish hedged play on this stock, I would consider an August bear-call credit spread above the $40 range. HAL has not been above $40 since last June and has shown resistance around $36.70 recently. This trade could be risky if crude oil prices continue to rise as we get later into the summer, but even if that happens, HAL would have to break through the top of resistance it formed around $38 back in July before this position would be in trouble.
Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns and controls a long hedged position in HAL. Both this position and his personal trade can be profitable at the same time.
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