Put Traders Should Take a Flier on Schlumberger Stock

Core Viewpoint - Schlumberger NV (NYSE:SLB) stock has been on an upward trend since mid-August, currently trading at $35.97, but faces significant overhead resistance within a trading channel between $32 and $36, suggesting a potential short-term drop is likely [1]. Group 1: Stock Performance - SLB stock has increased by 1.9% and is on track for its seventh daily gain in eight sessions [1]. - The stock is encountering pressure at the $36 level, which has been a resistance point since early April [2]. - The stock is currently close to its 128-day moving average, being within 0.75 of the 20-day average true range (ATR) [2]. Group 2: Historical Trends - Historical data indicates that similar price actions have occurred four times in the past three years, with the stock declining one month later each time, averaging an 8.2% loss [3]. - A similar decline from the current price would bring SLB back to approximately $33, maintaining its position within the current trading channel [3]. Group 3: Short Interest and Options - Short interest in SLB has decreased by 43.8% in the last two weeks, indicating limited short covering potential [4]. - Options appear to be a cost-effective strategy, as the Schaeffer's Volatility Scorecard (SVI) of 31% ranks in the low 11th percentile of its annual range, reflecting low volatility expectations from options traders [4].