STOCK SHOWDOWN - Writing Covered Calls - HAL vs SLB

Which stock would I buy for Writing Covered Calls - HAL vs SLB
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DISCLAIMER: This stock comparison is 100% for entertainment. I'm not recommending these stocks as a purchase. The research jump links in this blog post are ones that I use to start my stock investing research. Always do your own due diligence and never risk more money then you are willing to lose. Think of it like this blog post as seeing the world thru my eyes.
COVERED CALL SHOWDOWN! - WHICH STOCK WOULD I PURCHASE TO WRITE A COVERED CALL
Halliburton Company
	HAL	vs		SLB
Schlumberger Limited
Seeing the World Thru my Eyes - the Straight Talk
Oil stocks were crushed with the rest of the markets during the height of the COVID-19 lock down ... as the prospects of less travel and less gas being purchase, oil futures were crushed and many MANY oil producers as well as the oil infrastructure stocks fell to recent lows ... companies like Chevron CVX claimed shareholders nerves by not reducing the its dividend ... but for many others ... Like HAL and SLB, they just couldn't afford to not cut it and hence, each stock fell to some serious lows. With many believing that these companies may not rally back ... as production around the world has slowed ... it might be a long road to stock recovery for these two ... but with the recent wind of renewed optimism with economies opening oil prices are back up and so are the oil infrastructure stocks ... so with all of that said, which of these 2 companies are best for a 30 day Covered Call trade? Let's break it down in this week's Stock Showdown!
NOTE - AT THE TIME OF THIS POSTING, BOTH COMPANIES STOCK PRICES BELOW
HAL			SLB
$15.32			$22.61
Halliburton Company			Schlumberger Limited
Just in case you didn't know ... here's some basic company information about what they do.
Chevron Corporation, through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as operates a gas-to-liquids plant. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products ...			Phillips 66 operates as an energy manufacturing and logistics company. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks; delivers refined products to market; provides terminaling and storage services for crude oil and petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas. The Chemicals segment manufactures and markets ethylene and other olefin products ... Phillips 66 was founded in 1875 and is headquartered in Houston, Texas.
Yahoo Summary-HAL			Yahoo Summary-SLB
#1 - The Golden Rules of Covered Call Writing!
The Golden Rules of Covered Call Writing are subjective ... the basic idea is to avoid as much risk as possible when determining a new stock purchase for a Covered Call Write ... we can not avoid risk entirely but using certain rules or guidelines will help use reduce that risk during the timeframe we use the stock for selling premium. I've included the most popular rules or guidelines below which include: avoid a company's earnings report, is the company apart of the S&P 500 or Dow Jones?. Does the company have a dividend? Does the company have same store sales reports? Do you want to own the stock? > This list isn't the end all be all list but a starter list for your research and lowering your risk ... but again, we can not avoid risk .
Halliburton Company			Schlumberger Limited
S&P 500?	OPTIONS?	DIVIDEND?	S&P 500?	OPTIONS?	DIVIDEND?
Confirm	Option Chain-HAL	Verify-HAL	Confirm	Option Chain-SLB	Verify-SLB
Seeing the World Thru my Eyes - the Straight Talk
Hmm, yes, they both offer a dividend but with recent CUTS to those dividends ... its shaky at best for most dividend investors ... HAL = 0.18(1.10%) SLB = 0.50(2.27) I guess it's nice that they elected to keep paying something ... SLB pays more and I feel they are Best in Breed when it comes to oil infrastructure stocks ... so for me I have a clear winner here.
#2 - What story is the chart telling us?
When buying stocks to Write Covered Calls the prime objective is for the stock to trade sideways to higher ... selling premium traders will purchase a stock and sell the Out of the Money strike to collect both the premium and the stock appreciation. I always like to look at a chart and ask the question "what story is this chart telling me?" ... if its trending higher, this is good. If its trending lower, well, I really need to do my research if I'm going to invest in a company that its stock is trending lower.
See Support-HAL			See Support-SLB
Seeing the World Thru my Eyes - the Straight Talk
Both have rallied off the lows and are now clearly trending higher ... HAL seems to have been cut at the knees during the sell off and Wall Street is buying that low LOW entry purchase with them ... SLB has moved higher ... I would suspect ... they both now trade based on the markets and the price of oil ... if either fall off you can bet these stocks will too. I like the value SLB shares seem to have as they both head higher.
#3 - What are "THEY" saying?
I'm not an expert when it comes to whether a stock is undervalued or overvalued or if its a Buy or a Sell ... so I use some great websites to 'paint a picture' for me. Some will have a stock as a Buy and another will have it as a Sell ... so I usually have 3 or 4 different sources to help me.
Halliburton Company			Schlumberger Limited
Zacks	Yahoo Prem	AmBull	Zacks	Yahoo Prem	AmBull
BUY	FAIRVALUED	STAY IN CASH	BUY	FAIR VALUED	STAY LONG
Corfirm Rating - HAL	Yahoo Summary-HAL	Trending? -HAL	Corfirm Rating - SLB	Yahoo Summary-SLB	Trending? -SLB
Seeing the World Thru my Eyes - the Straight Talk
With both stocks rallied HARD off the recent bottom's ... chart indicator site like American Bull can be misleading ... what's good today might not be good with tomorrow's trading ... I do like the Zacks BUY ratings and Yahoo Prem UnderValued ratings as it tells me Wall Street thinks its still a undervalued trade and probably has less downside risk ... but again, the price of oil and the news from OPEC will stir these stocks higher or lower and you have to know that going in on either of these. HAL's ratings tell me a good recovery story
#4 - SHOW ME THE MONEY!
Another great visual when quickly trying to determine if this/these are companies we want to own ... remember, we have to own these companies and if the picture isn't telling us a clear picture of a companies prospects then I have to make sure I really do my homework.

Yahoo Summary-HAL			Yahoo Summary-SLB
Seeing the World Thru my Eyes - the Straight Talk
Wow, we don't have to spend much time here ... I'd will have to DIG DEEP on SLB's numbers as to why they got crushed recently ... HAL is definitely keeping the boat steady ... I give HAL the check mark here but a deeper dive on SLB is needed if I throw money their way.
#5 - What kind of Covered Call profits can we make?
Giving someone the right but not the obligation to take your shares can be very profitable if done correctly ... typically most Covered Call writers will try to make 3% Cash on Cash profit in a 30 day period. Mastering this skill of selling premium can increase your annual returns vs a buy and hold investment strategy. Below is a (1) deviation Out of the Money Covered Call that one might do if they sell premium.
Looking at a 30 day window using (3) deviationS Out of the Money
	THESE ARE NOT REAL TIME! CLICK LINK BELOW FOR THAT			POSTED >	6/9/2020
HAL	Current Price	Strike Price	LAST TRADE	30 day return	Expiration
	$15.32	$15.00	$0.72	2.61%	5/29/2020
	$15.32	$15.50	$0.46	4.18%	5/29/2020
	$15.32	$16.00	$0.31	6.46%	5/29/2020
			THIS IS NOT THE BID OR MID
Check this stocks options here >		https://finance.yahoo.com/quote/HAL/options?p=HAL
	THESE ARE NOT REAL TIME! CLICK LINK BELOW FOR THAT
SLB	Current Price	Strike Price	LAST TRADE	30 day return	Expiration
	$22.61	$22.50	$1.94	8.09%	5/29/2020
	$22.61	$25.00	$0.94	14.73%	5/29/2020
	$22.61	$27.50	$0.45	23.62%	5/29/2020
			THIS IS NOT THE BID OR MID
Check this stocks options here >		https://finance.yahoo.com/quote/SLB/options?p=SLB
Seeing the World Thru my Eyes - the Straight Talk
SLB is paying nice premiums for its ATM / OTM strikes ... HAL's aren't so bad either for a 30 day trade ... SLB options were light with not having many offered ... I'm thinking HAL has the more typical CashonCash gains we expect to make ... I'd be a bit leary of SLB's for this time frame.
#7 - "HURRY HURRY, READ ALL ABOUT IT!"
The internet has so many resources for good information on companies ... whether its news, events or just some blogger with a great perspective on a company's prospects ... I love just glancing at the news feeds to get a feel for what's going on with a company I'm researching ... below are some helpful jump links I use.
Seeking Alpha		DivChannel	Seeking Alpha		DivChannel
Alpha Articles Search-HAL		Verify-HAL	Alpha Articles Search-SLB		Verify-SLB
MY WINNER IS!!!
	HAL	vs		SLB
	SCORE		SCORE
	4		3
Seeing the World Thru my Eyes - the Straight Talk Recap!
Halliburton takes down this Stock Showdown for the week - In My Opinion - this one surprises me because I've always thought SLB was the suprerier company ... Cramer is always talking them up and rarely ever talks HAL ... anyway, understanding that these two companies SWING with the price of oil and the news from OPEC and Russia will help you handle owning companies like this ... also do a deeper dive into WHAT THEY EXACTLY DO to understand how they work ... many do not know the business of oil infrastructure and why they are some of the only companies on the planet to be able to do what they do. So if you believe the future is bright for the recovery ... dipping back into oil might be ok
The BONUS Deeper Dive!
#8 - More number that help us Up Our Game!
I'm not an expert when it comes to whether a stock is undervalued or overvalued or if its a Buy or a Sell ... so I use some great websites to 'paint a picture' for me. Some will have a stock as a Buy and another will have it as a Sell ... so I usually have 3 or 4 different sources to help me.
FFTY	ST50	S&P 500	FFTY	ST50	S&P 500
		YES			YES
Does either of these companies have Earnings Report (next 30 days)
April 16, 2020		>		May 16, 2020
~	Jul 20, 2020 - Jul 20, 2020		~	Jul 24, 2020 - Jul 24, 2020
Verify-HAL			Verify-SLB
Dividend 2%	EX-DATE	Ave Vol	Dividend 2%	EX-DATE	Ave Vol
4.70%	Jun 02, 2020	33.606M	8.85%	Jun 02, 2020	22.376M
Verify-HAL			Verify-SLB
What story is the chart telling you?
StockCarts	Finviz	BarCharts	StockCarts	Finviz	BarCharts
View Chart-HAL	See Support-HAL	View Chart-HAL	View Chart-SLB	See Support-SLB	View Chart-SLB
I hope you enjoyed this Covered Call Stock Showdown blog ... as always you know this is for entertainment and before EVER investing a nickel of your hard earned money you need to do your research or what they call due diligence ... no, nada, zip zilcho stock recommendations were made here ... this ALL should be your STARTING POINT for determining if either of these companies meet your stock investing risk profile. Good luck everyone!
Disclaimer - No - at the time of this posting I do not have a position in this equity. I will not take a position in this equity for 3 days of this equity as to not front run for this equity.
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