There are only a few things that can stop or, at least, slow down a stock that is on a roll and going higher. Some of those reasons might be a bad earnings report, an inside scandal, a bearish market or maybe some overhead resistance. Here is a trade idea that is counting on the last-mentioned reason to turn this stock around.

Houston, Texas-based Schlumberger (NYSE:SLB), a major player in the oil and gas exploration and production industry, is a trade idea built strictly on playing the percentages. SLB has not been able to get across and hold the $77 barrier for almost three months. In the past, when it hasn’t been able to accomplish that feat, it has declined shortly afterward.

With SLB trading here at $76.66, you can buy the SLB March 77.50 Puts for $3.80 or less.

What is also nice about this trade idea is that the 200-day simple moving average has joined the party at the $77 resistance level. The 200-day SMA has halted many stocks in their tracks before.  Knowing this market has been more bullish than bearish lately, this trade idea should only be considered if there is a bearish entry confirmed.

The long put strategy is pretty straightforward. The trade profits when the stock falls and the put premium increases as the SLB option moves farther and farther in-the-money (ITM). Maximum profit is almost unlimited only because SLB can only fall to $0 (which is highly unlikely) and the maximum loss is $3.80 if SLB finishes at or above $77.50 at March expiration.

It probably makes sense to wait until SLB trades below $75.80, which is the low of the previous two trading days. Having patience and being able to sit on your hands when there is nothing to trade, or a trade is moving toward a good place to make it, is an admirable quality for a trader to possess.