Our SlingShot Trader members were able to capture 150% in Halliburton (NYSE:HAL) Feb 38 Calls this week, but when you’re looking at significant profits, sometimes even a small move in stock can spark fear in a trader. We look at why a recent gap down in HAL really isn’t worth worrying about.

Video Transcript

Looking at this, there wasn’t really any major news out there. A gap down of a couple of cents doesn’t look abnormal in the overall scheme of things for Halliburton, so it dropped a little bit. We saw potentially some profit-taking up here at the $38 level, and after a surge higher, that tends to be Halliburton’s MO. It moves up a little bit, and then down a little bit, the idea of taking two steps forward and one step back.

But I don’t think there was any specific news that caused that gap down, nor is a slight gap in Halliburton’s price from one session to the other much to be concerned with, as it does appear to happen quite frequently.

Investor Place advisors John Jagerson and S. Wade Hansen are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news.  Get in on the next trade and get 1 free month today by clicking here.