Long-term bull likes Schlumberger

Schlumberger is climbing off morning lows following its earnings report, and a large trade is bullish on the oilfield-services company in the long term.

optionMONSTER’s Heat Seeker system shows that a trader bought 5,000 January 2016 135 calls for $4.05 and sold 5,000 of the 165 calls for $0.70. The previous open interest was below 200 contracts in each strike, so this was a new vertical spread.

The trader spent $3.35 on the bullish call spread, which is the maximum risk. The position stands to make $26.65 if SLB is above $165 by expiration in early 2016.

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