by Ian Harvey
April 17, 2018
OUT WHILST THE GOING IS GOOD!
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
ConocoPhillips (NYSE: COP)
Here is an update of ConocoPhillips winning options call trade due to a rise in oil prices. This options trade was recommended to ““Armchair Trader Series” Members of Stock Options Made Easy, on Wednesday, April 11, 2018 -- in the article ““Armchair Trader Series” Recommended Options Trades for the Week beginning Monday, April 09, 2018”; which produced excellent profits of 100% within 3 trading days after executing the trade!
YOU NEED TO BE IN TO PROFIT!
ConocoPhillips (NYSE: COP) is the largest independent oil producer in the world, and its shares have performed relatively well as of late. The company enjoys incredible competitive advantages in holding high quality assets. Also, ConocoPhillips has an incredible competitive advantage in holding some of the highest quality oil producing assets in the industry.
To summarize COP’s assets, they have an average breakeven cost of under $40 WTI, and can continue production for at least 20 years with minimal capital spending, according to CEO Ryan Lance. The company's assets have the lowest breakeven cost in the industry, and can sustain current production rates for decades.
And now, that oil prices have started jumping back up toward $66 per barrel as observed on Tuesday as news leaked from various OPEC delegates that Saudi Arabia is looking for ways to push oil prices up toward $80; means great news for energy stocks like ConocoPhillips because higher oil prices tend to lead to wider margins.
COP has seen its stock price pushed above its prior 52-week high of $61.32, and is likely to be just the beginning of a rally much higher. Expect the stock to continue climbing up toward longer-term resistance at $64 in the run-up to the company’s earnings announcement on April 26, before market open. The advantage of buying the $65 strike calls is that, as the out-of-the-money option should see a nice increase in implied volatility and extrinsic value as the price of the stock gets closer and closer to it.
OPTION TRADE: Buy the COP MAY 18 2018 65.000 CALL at
approximately $1.25. Place a pre-determined sell at $2.50.
With oil surging to multiyear highs, energy stocks have been leading the S&P 500 index and the broader market.
U.S. crude rose 0.5% Friday to settle at $67.39 a barrel, marking a weekly gain of 8.6% and hitting the highest level since late 2014. Brent crude gained 0.8% to $72.58 a barrel for a weekly increase of 8.2%.
Despite U.S. crude futures falling 1.7% to $66.22 a barrel on Monday as oil prices retreated significantly, ConocoPhillips continued to rally.
ConocoPhillips rose 1.3% on Monday to 65.73, further extended from a 61.41 buy point cleared several sessions ago.
So, for those traders who managed to execute this trade recommended for consideration by Stock Options Made Easy; a nice tidy profit of 100% within a short period of time.
ACTION TO TAKE…….
"YOU NEED TO BE IN IT TO WIN IT!"
Now is the time to decide if it is worth continuing to hold this trade or exit on excellent profits. It is nearly always prudent to exit a trade before an unknown incident occurs that could rattle a sound profit, and this is a fine example of such a situation.
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.
Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……