I’m not sure that this is *the* turning point in oil stocks but the recent price action allows us a decent low-risk opportunity.
The stock has stayed under 40 for the past few months and is attempting to overtake it. Clear buyers have shown up in the 37 area so that’s our “bail” point. The momentum in the short term favors the bulls, and as long as crude oil doesn’t have another leg lower this trade will work out nicely.
Here’s the trade:
Buy to open HAL Jan 40 Calls @1.52
Exit the trade if the stock closes under 37. Sell half at 42.