Schlumberger (SLB, $42.82, up $0.70) is trading higher as we head towards the closing bell. The stock has traded as high as $43.37 as the Dow is having a strong day. The 160-point gain to 8828 should put the Dow in positive territory for the month if the gains hold. Oil is also up about $4 to $43 a barrel.

We got into the Schlumberger February 45 calls (SLBBI, $3.00, up $0.35) yesterday at $2.00 as the stock hit a low of $40.14. I had targeted $3.00 as an exit point and the calls are right there. We now have a 50% profit.

I don’t have a problem for those of you who may wish to keep the position open but the trade has already reached the initial target. The market looks like it wants to head higher and that could propel Schlumberger higher as well.

Have a great New Year and don’t forget to check back this weekend for the 2008 year-in-review.

Rick Rouse