Anatomy of a Trade - 11/05/25
The underappreciated heart of the economy v2.0
I’ve always said that fundamentals, research & convictions matter, but beating the market comes down to execution. That’s what these write-ups will be about.
I will share through them every change in my active portfolio - stocks & options, reasonings & plans, before I even hit the buttons. I won’t update DCAs, I will only share my plans & new/closed positions in these write-ups. You can follow the rest directly on savvytrader.
https://savvytrader.com/wealthyreadingspro/active
I also recently opened a Buy & Hodl portfolio on which I will DCA $4,000 every month & focus on buying the best assets I can at the best possible price, 100% focused on fundamentals & valuation, without any active management.
https://savvytrader.com/wealthyreadingspro/buyandhodl
Keep in mind that both portfolios have completely different goals and I can behave very differently on both for the same name - accumulating in the buy & hodl while selling in the active portfolio for example. Different rules apply.
My goal is to deliver alpha over the long term, not just six months under easy market conditions. If/when proven this content is valuable, it will be shared behind a paywall. No rush, though; it’ll stay free until proven valuable.
So here’s the deal: you get full transparency on my trades, right when I make them. If - and only in that case, it brings real & long-term alpha, it’ll be accessible only for a fee. I believe that’s fair enough, but feel free to provide feedback!
Nothing shared here is financial advice; we are all responsible for ourselves.
And before we start, a friendly reminder that you’ll find 15% off for any subscriptions to Fiscal.AI using my referral link - if interested.
https://fiscal.ai/?via=wealthyreadings
We’re going to make this short and sweet because it doesn’t need to be anything else. A month ago I shared a trade on Halliburton with, as usual, all the arguments and a clear trade plan.
Today’s setup is about Schlumberger, one of Halliburton’s competitor with a similar business model. The thesis is the same with minor differences in geography and specialization. SLB is slightly less specialized, but that doesn’t weaken the case.
You’ll have the arguments on the link above, I won’t go over it again.
By the way, HAL is up ~15% since I shared this write up, the option trade even more, which is a good confirmation of what can happen to SLB.
Like HAL, SLB trades close to its lowest multiples ever, as the market is focused on AI and growth, leaving little liquidity for value. That said, SLB is integrating AI services and recently launched a product called Tela to optimize operations. These services have been a big revenue tailwind for the company so more of them is positive.
In brief, SLB is a strong company in a forgotten sector and analysts have a higher price targets, with a big upside.
Just like HAL, the dynamics are shifting; interest is rising & price action is waking up.
Liquidity and Technicals.
Liquidity first: option flow has been active these last three days with large calls bought with strikes up to $45, expiring in February. Big accounts are turning bullish.
And SLB’s price action is setting up exactly like HAL a few weeks ago.
The stock broke a massive two‑year bearish trendline and is consolidating above. That kind of breakout isn’t to be ignored. We’re not out of the woods yet as the $30–$38 accumulation range hasn’t broken, but many apparenlty expect it to next quarter.
I wouldn’t rule out a retest of the trendline and daily averages around $35, that would be an even better entry. But there’s nothing wrong with starting a position today to my opinion.
I did.
The Playbook.
Same as HAL, there are two main ways to play this - many more in reality but I will share only to based on my preferences.
Long term, buy and forget. If you have liquidity aside and want safe positions, this could be it. Low valuation, strong fundamentals, 3% dividend yield, positive environment… As good as any to store cash in a defensive asset, with positive catalysts in term of liquidity inflow - which many other defensive names do not have.
Options. Liquidity is strong on the name and price action is bullish. Any covered sold put below the actual bottom seems safe enough, as long as you’re willing to own shares if assigned - meaning owning a major upstream player at its lowest valuation ever, and don’t mind not owning them if we just go higher.
In term of setup, always be paid first.
Sold Puts 20Mar’26 at $32.5 for $1.19
Bought Calls 20Mar’26 at $45 for $0.90
The share trade offers peace of mind. The option trade nets $0.29 per contract as long as the stock closes above $32.5 by March, with unlimited upside with the calls. It’s also possible to only uby the calls or sell the puts, once again… As always, countless ways to play a trade.
I personally took the option trade with a small position and would add if we touch $35. Having some exposition to defensive assets in today’s market isn’t a bad idea...