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.
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