Selling SLB puts for income.
Schlumberger Ltd. (SLB) is an oil and gas service company that helps drillers and producers. It’s services are in high demand right now as the global economy reopens.
Gasoline demand is hitting new record highs while natural gas demand is also very strong. This is leading more energy companies to drill. The count of North American rigs actively drilling for oil and gas has been on the rise.
All of this leads to higher profits for SLB as energy companies use more products and services.
By selling the February $32.50 puts near $1.40, we’re able to collect an annualized yield near 35%, while also giving us roughly $0.75 per share in cushion between the current market price for SLB and our strike price.
- Sell (to open) 2 SLB February 18th $32.50 puts
- Limit: $1.40 or more
- The new position will represent roughly 6.5% of our model.
- 11:06 Executed
- Sold 2 SLB Feb 18th $32.50 Puts @ $1.52