Long option trade on this energy company

Energy has been one of the better sectors to be in during 2022, and on pullbacks it presents an opportunity to get into a new trade. We've been watching shares of Schlumberger (SLB), and believe the stock will recover from recent lows around $34.  The stock currently trades at $38.30, and hit a high of $49 in June.

We are buying the Jan 2023 $40 Calls on SLB for $3.55, and view this as a medium risk trade.  Should shares go up to or above $40 our Calls will be solidly in the money with expiration in January. As money leaves the battered tech sector, we're likely to see inflows and buying in stable names like SLB.