SLB dropped almost 5% after earning. I like SLB and would not mind owning at $75.12. This trade is also used to counter my oil futures which I'm slightly short.
T's IV shot up to 100% today because of VZ's earning shortfall and/or awaiting some other impending news, so I entered this trade. Earning is scheduled after the market close on 10/25. VZ came out with not too great earning this morning and its stock dropped almost 5% with IV rank still elevated. I just had to enter this trade, look for IV contraction in the coming days.