economy
March 11, 2026
Buy the dip and hedge risk on this energy services stock, using options
Tony Zhang breaks down this cash-secured put strategy.
TL;DR
- SLB's stock has fallen despite rising oil prices, creating a valuation disconnect.
- Geopolitical disruptions tend to benefit oilfield services companies like SLB over time.
- The stock has found support at the $45 level, with potential upside towards $52.
- SLB trades at a discount to its peers in terms of forward P/E and expected revenue/EPS growth, but has higher net margins.
- Key bullish factors include accelerating international oil projects, technology expansion via acquisitions, and increased demand for services due to supply uncertainty.
- A conservative options strategy involves selling a cash-secured put to collect premium and potentially buy shares at a discount.
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