Scott Nations Recommeds An Options Strategy In Halliburton Company (HAL)

On CNBC's Options Action, Scott Nations talked about an options strategy in Halliburton Company HAL. He said that crude oil had a big rally since middle February, and Halliburton Company (HAL) traded lower in the same period.

Scott Nations believes that it would be a good idea to sell a call spread in Halliburton Company (HAL). Specifically, he wants to sell the April 46 call for $2.15, and buy the April 48 call for $1.30. He would collect $0.85 with this trade, and he would lose money if Halliburton Company (HAL) trades above $46.85 at the expiration. His losses are capped at $48.

Halliburton Company (HAL) fell 1.55% today, and it closed at $45.72.