Schlumberger Options Trading Offers Promising Opportunities for Investors
Investors in Schlumberger Ltd (Symbol: SLB) experienced the launch of new options trading today, with contracts expiring in November 2025. With 403 days remaining until expiration, these contracts present a chance for options sellers to earn higher premiums compared to those with shorter durations.
At Stock Options Channel, we utilized our YieldBoost formula to analyze the SLB options chain, identifying two noteworthy contracts: one put and one call.
The put contract at the $42.50 strike price currently has a bid of $2.03. By selling this put, an investor agrees to buy SLB shares at $42.50 while collecting the premium, leading to an effective cost basis of $40.47 per share (before brokerage fees). For someone considering buying shares at the current price of $44.54, this could be a more appealing option.
This $42.50 strike price reflects about a 5% discount from the stock’s current trading price—there’s a chance the contract might expire worthless with a 65% likelihood based on current analytical data. Stock Options Channel plans to track these odds and provide updates over time. If the contract does expire worthless, the premium would yield a return of 4.78% on the cash commitment, or an annualized 4.33%, which we refer to as the YieldBoost.
Below is a chart showcasing the trailing twelve-month trading history for Schlumberger Ltd, which highlights where the $42.50 strike is positioned within that range:
Shifting focus to the call side, the call contract at the $47.50 strike price has a bid of $2.54. If an investor buys SLB shares at the current price of $44.54 and sells this call as a “covered call,” they commit to selling the stock at $47.50. By factoring in the premium collected, this could result in a total return of 12.35% if the stock is called away at the November 2025 expiration (before any commissions). However, substantial gains might be missed if SLB shares rise significantly, emphasizing the importance of examining the stock’s trading history and fundamentals. Below is a chart showing SLB’s trading history, with the $47.50 strike marked in red:
The $47.50 strike price is about 7% above the current trading price, meaning there’s a risk the covered call may also end up worthless. Current data suggest a 49% chance of that occurring. Stock Options Channel will continuously monitor and report on these odds. If the covered call does not expire, it could result in an additional return of 5.70% for the investor, or an annualized 5.16%, also categorized as YieldBoost.
Both the put and call contracts have an implied volatility of approximately 31%. In contrast, we’ve calculated the actual trailing twelve-month volatility, based on the last 250 trading days and the current price of $44.54, to be 26%. For more options ideas worth exploring, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
