True Test of Halliburton Strength to come With $USOIL Crapping

HAL has fought furiously through a terrible market for USOIL, but its time of reckoning could now be here with OIL under 38 per barrel. It would be wholly unsurprising to see HAL go sub-14, even sub-13, because oil dipped roughly 7 percent yesterday and that dip in price will take some time to be recovered. HAL and most oil-related stocks should be shorted for the time being.

If Halliburton holds its value with oil this far in the crapper, it is an even stronger company than previously thought. Halliburton has been around since 1919, so 101-years of resiliency will be put to the test until crude prices at least climb 40/bar again. Logic dictates that HAL, LBRT, and all the actual oil giants (BP, Shell, etc) take a royal tumble throughout the remainder of September, even.

That is to say, this trader scheduled a PUT for HAL with a break-even at just under 14/s. The risk is high with HAL having shown so much strength since its position was first entered at 5.11/share, but rather than "only wait" for the re-entrance point it made sense to place a put on Halliburton accordingly. As far as advice, none given: If you think it's a clever and good move, more power to you and your account.

HAPPY TRADING

and

May the odds be forever in your favor!

-BDR