SLB has had a great run already this year.  It has finished in the green every day this month as it extends the rally off the December close to nearly 13%.  Today the stock is bumping up against a very heavy resistance area near $76.00.  Back on April 21 SLB took a damaging hit after opening the session with an earnings inspired breakdown gap.  A severe downleg was underway and by mid November SLB had fallen 20%.  The current rally has lifted the stock back up to the April breakdown gap erasing the entire seven month sell off in less than seven weeks.  We believe the stock is now quite extended in the near term and is due for a healthy pullback.  We remain bullish on SLB, and energy as a whole, and will be looking to rebuild positions at lower levels.  As this plays out an option play is beginning to look very attractive.  Bob von Halle has the details:

If you are owner of SLB stock and are concerned about the chance for a significant near term pullback, you might want to consider the following options strategy. With SLB trading around $75.75 look to do the following:

Sell the Feb 77.5 calls for approx $1.55 which would be essentially a covered call strategy that lets you participate in further upside. 
Buy the Feb 75 puts for approx $2.05 cents 
Sell the Feb 70 puts for approx $. 55 cents for total cost of $1.55
So essentially for ZERO outlay other than commissions you have given yourself a bit of further upside room, while protecting yourself for a 5 point pullback in the coming weeks.
Note that SLB reports earnings on Jan 19th which happens to be option expiration date for that month. You can do a similar type trade in that month, but the above gives you much more time for this to work out. Also note that SLB has weekly option series but they are not very liquid and have little in the way of open interest, so I would recommend sticking with the regular monthly series.
At time of publication we remain long SLB in most managed accounts.