**Halliburton’s Sizzling Earnings: A Buoyant North America Amidst Global Challenges**
**A Contrasting Picture: North America’s Surge, International’s Stagnation**
LA News Center analysts were abuzz this week as Halliburton unveiled its financial performance, showcasing a vibrant North American arm while encountering flat-to-slumping revenues abroad. The company’s sterling domestic showing, driven by robust drilling activities and enhanced productivity, offset the lackluster global outlook. However, analysts anticipate modest international growth by year-end, offering a glimmer of hope amidst the global gloom.
**Navigating the Market’s Maze: Halliburton’s Range-Bound Journey**
Halliburton’s share price has been dancing within a familiar range for the past two years, between and . This price action reflects the complex interplay of geographic market variations and the inherent volatility of the oil services industry.
**Halliburton: Valuation Enigma**
Currently, the company’s valuation hovers around 12x earnings, presenting an alluring bargain compared to the wider S&P 500. However, this valuation aligns with Halliburton’s historical multiples, indicating that the apparent cheapness may stem from its concentrated geographic exposure and cyclical nature.
Trading Strategies: Exploring Overwriting Options
Halliburton’s financial stability, coupled with an anticipated robust free cash flow of .4 billion in 2024, makes it an attractive target for a trading technique known as overwriting.
- Selling Covered Calls for Current Shareholders: Owners of Halliburton shares can sell covered calls, collecting a premium and capping potential upside. For example, the May 24 strike calls offer a premium of approximately 1% of the current stock price, providing a 7% potential upside in four weeks.
- Writing Cash-Covered Puts for Non-Shareholders: Investors who do not own Halliburton shares can sell cash-covered puts, collecting a premium in exchange for the obligation to purchase shares at a specific price if the stock declines. The May 24 strike put currently yields a premium of 1.5%. If the stock price falls and the put is assigned, the effective purchase price would be .42, opening the opportunity to sell upside calls.
**Disclaimer:** This article is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Consult a qualified financial advisor before making any investment decisions.
