Options activity on Schlumberger Limited (SLB) surged on Monday, with call volume exceeding puts by nearly six-to-one as traders positioned for a potential rally above $57.50.
A total of 28,991 contracts changed hands, including 24,756 calls and 4,235 puts. The October $57.50 call led activity, trading 14,307 contracts and representing more than half of all call volume. Open interest in the contract stood at 41, while the December $60 call saw 2,625 contracts traded with open interest of 4,223. The September and November $55 calls accounted for 954 and 1,998 contracts traded, respectively, with open interest of 15,135 and 6,005.
On the put side, the August $52 strike saw 1,136 contracts traded with open interest of 1,109. Implied volatility for the 3-month tenor declined to 33.69%, down 0.46 points, while the 90/110 call skew slipped to -0.25 percentage points.
Schlumberger’s stock was down 0.7% at $53.50, leaving it roughly 7.5% below the $57.50 threshold targeted by options traders within two months. The 12-month consensus price target stands at $61.93, implying a 17% upside from current levels.
Analysts maintain a strong buy rating on the stock, citing a 55.4% one-year return and a 3.0% dividend yield. The company has increased its dividend for four consecutive years and has paid dividends for 56 straight years. The trailing 12-month P/E ratio is 15.7x, while 90-day volatility measures 39.9%. Thirteen analysts have recently reduced earnings forecasts.
