SLB: Reader's Choice (Incl Video)

This complimentary article from Options Profits was originally published on April 26. Don't risk missing over 40 options trade ideas every week, exclusive commentary and webinars from over 15 experts. Click here for more information and a 14-Day Free Trial.

Schlumberger (SLB) provides a range of products and services from exploration through production and has a lot of room to rally right here. In 2Q11, the stock broke into the $90s, and as recently as February the stock was over $80. The downside is maybe $70. This is not a bad place to be for a stock in what appears to be shaping up to be a bull market.

The oil and natural gas boom has to be a good thing for SLB in the near-term, and I wouldn't be shocked if the current administration, that has been so anti-oil and nat gas exploration lets a few permits through over the next months, something that would help SLB's forward looking earnings. Any type of potential new drilling in the U.S. would be a very strong catalyst for a company like SLB.

Before we get into the options trade, let's review the fundamentals and charts with Jill and Scott in the T3/OP video: