Halliburton (HAL) Sees Moderate Bullishness After Earnings

Halliburton (HAL) announced better-than-expected earnings figures on Oct. 16, and at least one investor expressed moderate bullishness during morning trading a week following the positive news.

We saw an investor sell the April/January 2011 30 put spread for around $2 per spread. So far on the day, the April 30 puts have dropped 37 cents to around $2.60, and the January 2011 30 puts are currently trading down 30 cents to around $4.65. This HAL put spread seller sold the January strike puts to finance the April 30 put purchase 5,000 times.

Current open interest of the April 30 puts is 564 contracts and the January 2011 30 puts are home to open interest of 1,400 contracts, indicating that today’s volume consisted of investors trading to open.

HAL shares have rallied more than 60% since reaching a recent low of around $18 in July. The company climbed to a new 52-week high yesterday, which could be why we’re seeing at least one investor express moderate bullishness instead of selling puts or buying calls outright in HAL.

Heavy put-spread selling action does not necessarily mean investors should run out and buy HAL shares. HAL is currently trading up 90 cents, or 3%, to $31.70, but keep in mind that at least one investor is calling for further upside in the intermediate-to-long term a week after the company released earnings figures.

For more options insight in HAL:

Pulte Homes Call Buying and Halliburton Call Selling