SLB Surges 3.68% Amid Venezuela Oil Gambit: Can This Bullish Momentum Sustain?

Summary
• Schlumberger (SLB) rockets 3.68% to $47.59, piercing its 52-week high of $47.725
• Sector peers like Halliburton (HAL) rally 2.88%, signaling energy sector reawakening
• Options frenzy: 132 contracts traded for the $45 call ahead of 1/23 expiration

SLB’s intraday surge defies market caution, fueled by geopolitical tailwinds from Trump’s Venezuela gambit. With the stock trading near its 52-week peak and technical indicators flashing bullish signals, energy investors are recalibrating their risk appetite. The $47.725 level looms as a critical psychological barrier, while the options market’s aggressive positioning hints at high conviction in near-term momentum.

Venezuela Oil Gambit Ignites Energy Sector Optimism
SLB’s sharp 3.68% rally aligns with Trump administration’s aggressive Venezuela policy, which has triggered a re-rating of global oil infrastructure demand. Sector news highlights Chevron and Quantum Capital’s $22bn Lukoil bid, while U.S. refiners prepare to process Venezuelan crude. The geopolitical shift has created a tailwind for oilfield services firms like SLB, which provides drilling and production solutions critical to unlocking Venezuela’s 50mn barrel reserves. This strategic repositioning explains the stock’s break above key resistance levels and its 4.1% intraday range.

Energy Services Sector Rallies as Halliburton Trails SLB’s Momentum
The Oil & Gas Equipment & Services sector is experiencing a synchronized rebound, with Halliburton (HAL) up 2.88% despite trailing SLB’s performance. This divergence suggests SLB’s technological edge in deepwater drilling and enhanced oil recovery solutions is gaining market traction. While both firms benefit from Venezuela’s oil reactivation, SLB’s 20.9x dynamic P/E ratio versus HAL’s 18.5x multiple indicates stronger near-term earnings visibility. The sector’s 3.5% average intraday gain underscores broad-based optimism about Trump’s energy agenda.

Options Playbook: Capitalizing on SLB’s Bullish Technicals
• MACD: 2.03 (above signal line 1.41) = bullish momentum
• RSI: 81.67 (overbought territory) = caution ahead
• 200-day MA: $35.66 (well below current price) = strong trend
• Bollinger Bands: Price at $47.59 vs upper band $46.57 = overbought

SLB’s technicals paint a mixed picture: while the 3.68% rally confirms a breakout above key moving averages, the RSI’s 81.67 reading signals potential near-term exhaustion. Two options stand out for aggressive positioning:

• SLB20260123C45
- Call option, strike $45, expires 1/23
- IV: 35.02% (moderate), Leverage: 18.24%, Delta: 0.7538 (high), Theta: -0.1072 (rapid decay), Gamma: 0.0963 (responsive)
- Turnover: 31,164 contracts (high liquidity)
- Why it works: High delta ensures participation in continued rallies, while moderate IV offers reasonable cost efficiency. Projected 5% upside (to $49.97) yields $4.97/share payoff.

• SLB20260123C45.5
- Call option, strike $45.5, expires 1/23
- IV: 51.45% (elevated), Leverage: 18.90%, Delta: 0.6717 (moderate), Theta: -0.1213 (aggressive decay), Gamma: 0.0901 (responsive)
- Turnover: 3,670 contracts (solid liquidity)
- Why it works: Higher gamma ensures outsized gains if price accelerates. 5% upside scenario (to $49.97) generates $4.47/share payoff with 18.9% leverage amplification.

Trading View: Aggressive bulls should target the $45.5 call for leveraged exposure, while conservative players may use the $45 call as a core position. Watch for a pullback to the 200-day MA ($35.66) as a potential entry trigger.

Backtest SLB Stock Performance
The backtest of SLB's performance after a 4% intraday increase from 2022 to the present shows mixed results. While the stock experienced a maximum return of 0.79% over 30 days, the win rates for 3-day and 10-day periods are lower, at 49.90% and 47.75%, respectively. This suggests that while the stock can bounce back from a significant intraday surge, its overall performance in the short term is somewhat erratic.

SLB’s Bull Run Faces Crucial Test: Act Now Before 1/23 Expiry
SLB’s 3.68% surge reflects a perfect storm of geopolitical tailwinds and technical momentum, but sustainability hinges on maintaining its 52-week high of $47.725. The options market’s heavy positioning in January 23rd contracts suggests a high conviction in near-term continuation. With Halliburton (HAL) up 2.88% as sector leader, energy services firms are clearly outperforming. Investors should prioritize the $45.5 call option for leveraged exposure, but remain vigilant for a potential RSI reversal above 80. Act now: Position ahead of the 1/23 expiry to capitalize on Venezuela-driven momentum.