Sponsored By:

Schlumberger Ltd. (SLB) Profits

"Buy to close" half of the SLB April 35 Puts (SLBPG) for 40 cents or less, and "sell to close" half of the SLB April 50 Calls (SLBDJ) for $1.05 or more

Dear Fellow Options Traders,

With more than 100% winners on both sides of our Schlumberger (SLB) trade, we believe it is prudent to sell half of the position and put the profits in our pocket.

Yesterday, the Fed announced its intentions to inject a surprising new amount of liquidity into the economy, which pushed the dollar lower and drove oil up more than $50 per barrel. At $50 per barrel, we are now at the high-end of the range.

Given the surprise announcement by the Fed, the elevated price of oil and our current gain in this stock, it is time to turn a paper gain into a cash gain.

"Buy to close" half of the SLB April 35 Puts (SLBPG) for 40 cents or less, and "sell to close" half of the SLB April 50 Calls (SLBDJ) for $1.05 or more.

Have a good day trading.

Nick Atkeson and Andrew Houghton