With markets not offering up a wave of no brainer trades, we are sifting through the charts to spot the best opportunities. And I really like one that stands to benefit big-time from the rising cost of oil and the ongoing conflict in Iran. It has been building up a bit and consolidated over the last few days but if that sector is any indication, it is ready to pop.

Keith Harwood spotted it in a chat we did (you can check that out here) and made a strong case for this to be the trade of the week. The best news is that the options are cheap and pretty liquid. Take a look at the chart:

In a solid up trend over the last two months SLB has some great momentum and looks to extend the run. It has benn coiling a bit in the last week or so and that indicates it is ready for another leg up. With oil touching $100 a barrel, there is support all around for this move.

Oct 16 60 calls are at about $1.60 this morning so it is the kind of trade that you can get in cheap. We’ll keep watching it and update you as it plays out.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily